Ukraine can become a country of risky transit because of developing political crisis

Read it in Russian

One of first consequences of the political crisis in Ukraine is intensified struggle for redistribution of energy companies’ assets, Director General of the International Institute for Political Expertise Yevgeny Minchenko announced today, while presenting results of the survey “Ukraine’s Energy Potential” at the REGNUM press center.

He cited as an example the situation with Cherkasoblgaz, where 51% of its authorized capital stock remains a state property, however, there was an attempt to seize it by some business structures that are close to Bloc of Yulia Timoshenko.

As Minchenko says, there are “about five disputable regional gas companies” in the territory of the country, so, the situation with Cherkasoblgaz will be only the first in a row.

In his turn, Free Europe Foundation Managing Director Oleg Sapozhnikov believes that development of the political crisis will result in decreasing cost of Ukrainian energy assets. Besides, according to him, in the future, Ukraine can become a country of risky transit as a result of increasing political instability. In such cases, Sapozhnikov says, legal field of the transit system functioning will change, transit flows will change, which will provide another argument for speeding up the construction process of the Baltic Pipeline System second stage, North-European Gas Pipeline, transit routes via the Black Sea bypassing the Ukrainian territory.

Speaking on other consequences of the political crisis in Ukraine, Sapozhnikov reminded that tax collection decreased, which resulted in decreasing budget revenues. At the same time, potential investors are hesitating with their decisions to develop their businesses in Ukraine until the crisis is settled.