KIEV, Ukraine, Dec. 23 (UPI) -- It's unlikely that Russian gas monopoly Gazprom will form a joint venture with Ukrainian utility Naftogaz in the next year, an energy spokesman said.
Gazprom Chief Executive Alexei Miller signed a memorandum of understanding with Naftogaz this week to set up a joint venture for coal bed methane. Miller was quoted by the National News Agency of Ukraine as saying the move put his company one step closer to an inclusive partnership next year.
"I think that in early 2011 we will make further concrete steps to achieve a final agreement on creating a joint venture," he said in a statement.
But Valentyn Zemliansky, a spokesman for Naftogaz, said legislative restrictions make it unlikely a partnership could form that early. He said Russia has laws on foreign development and Ukraine has regulations on access to its gas transit system that are potential hurdles.
He was quoted by the news agency as saying that while there is a lot of talk about a formal partnership, "we should not expect … a joint venture or division of Naftogaz of Ukraine into any structures, since in the budget for the next year Naftogaz is positioned as a single company."
Gazprom has pressed for the joint venture on the grounds it would help Ukraine repair its reputation as a gas-transit nation. Opponents in Kiev, however, complain of moving to close to the Kremlin.
