March 10, 2009 - 22:45 AMT
EU is seeking agreements on gas shipments with Armenia
The EU is seeking bilateral agreements on gas shipments with former Soviet countries including Armenia, Azerbaijan, Moldova, Ukraine and Belarus to secure stable supplies, European Commissioner said.

"Gas should flow even as problem arises," said Benita Ferrero-Waldner, European Commissioner for external relations in a presentation in London. "We need partners whose governments' honor contracts."

A price dispute between Russia and Ukraine over gas supplies blocked transit shipments to the 27-member EU for two weeks in January. OAO Gazprom, Russia's natural-gas exporter, resumed supplies to the European Union via Ukraine on Jan. 20, after they signed 10-year natural-gas contracts.

The EU agreements with former Soviet countries would depend on each country's role in gas trade, Benita Ferrero-Waldner said. Armenia and Moldova depend on gas imports for most of their energy needs, while Ukraine is the major route for Russian gas on the way to Europe. The potential for EU partnerships would depend on countries' progress toward democracy, she said.

The EU will host a conference in Brussels on March 23 to discuss Ukraine's gas-transit industry and funding commitments from member states and international institutions that would go to improve the safety and quality of the pipelines. The deepening global economic crisis may complicate efforts to raise money for modernizing Ukraine's natural-gas pipeline network, Blomberg Press reports.