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Putin attacks Polish gas firm's role in key venture

Tue Sep 1, 2009 8:27pm IST
 
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SOPOT, Poland, Sept 1 (Reuters) - Russia's Prime Minister Vladimir Putin on Tuesday called for an investigation into the way a private Polish firm won a share of a key pipeline venture bringing Russian gas to Europe.

The Polish firm, Gas Trading S.A., rejected his criticisms and said its participation in the Yamal-Europe project would continue.

Putin's comments at a joint news conference with Polish Prime Minister Donald Tusk highlighted the unease in political and economic relations between Moscow and EU member Poland, although both prime ministers said relations had improved recently.

Russia supplies a quarter of Europe's gas needs and most of this is exported via the territory of Ukraine. Poland also represents an important transit route with Russia's gas export monopoly Gazprom (GAZP.MM: Quote, Profile, Research) shipping just under a tenth of Europe's needs via the country.

Gas goes via the Yamal-Europe pipeline, which Putin said was meant to be 50/50 percent owned by Gazprom and Poland under an inter-governmental deal. Instead they own 48 percent each with the remaining 4 percent controlled by Gas Trading S.A.

"...Instead there is a private investor from the Polish side with four percent... I don't want to accuse anyone but I think we should look at the potentially corrupt side of this decision from both (Russian and Polish) sides. Because it was impossible to do this without agreement from the Russian side," Putin said.

A high-ranking Gas Trading official, speaking to Reuters on condition of anonymity said the company had been a shareholder of EuRoPol Gaz, the Polish Yamal gas pipeline operator, since 1993.

"The agreement that PM Putin is talking about was also reached in 1993 and Gas Trading's participation was accepted by both governments. I don't see any reason why that should change..." the company official said.

"As far as I know, Gas Trading's participation was put forward as a proposition by the Russian side and the participation of three sides to this deal was viewed as necessary at the onset of the project. Some change in the Russian stance on this subject has apparently taken place, but I don't see any reason for this.   Continued...

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