The relations between Azerbaijan and Ukraine quite often arouse jealousy among neighboring countries. The full understanding between the two countries has become a basis for the successful cooperation in both economic and political spheres uniting the both states in GUAM. The appreciable interest of Ukraine to Azerbaijan in energy sphere holds much promise for Ukraine regarding transportation of the Caspian energy sources to the European market through its own territory. Thus, Ukraine secures its energy independence from Russian energy sources to some extent.
"The conception of energy blackmail is now frequently used is modern world," the Ukrainian President Victor Yushenko said during his opening speech in the Energy Summit in Kiev. "The cases of the energy pressure have become almost usual in our present -day life. The tendencies in the Euro-Asian space compel us to employ jointly planned actions which aim at resisting threats and challenges in energy security," he said.
Therefore, the energy security became culmination point during Azerbaijani President Ilham Aliye's visit to Ukraine on 21 to 23 May. The participation of the Azerbaijani President in the Energy Summit in Kiev shed a light on several Azerbaijani-Ukraine energy projects which were not coordinated to the end. In particular, the realization of the Odessa-Brodi project assumed concrete shapes. The Azerbaijani President once again stated that his country has always supported the diversification of export of the energy sources. "There is political support of all the countries involved in this project. Now we have to coordinate economic and technical details, test them in practice and see their results," Ilham Aliyev stated. "The new terminal in the Black Sea shore of Georgia constructed recently due to the Azerbaijani investments is a part of the Odessa-Brodi project to a certain extent," he added. The words of his Azerbaijani counterpart were very pleasant for Ukrainian President. Yushenko, who did not hide his feelings said: ""It is very significant for the Ukrainian side that the relations of our states transfer to the status of strategic partnership. It means that those values and goals that we jointly determined are not only values of today, but also our action plan for future," he said. The point is that the further construction of Odessa-Brodi oil pipeline is necessary for Ukraine to secure the realization Euro-Asian oil transport corridor and increase the energy security of Ukraine. The completion of the Odessa-Brodi-Plotsk-Gdansk oil pipeline will secure shortest and most economic access to the Caspian oil for the European Union countries.
The Ukrainian President also signed a decree on Securing Operation of Odessa-Brodi Pipeline on the Project Guidelines on the same day with the meeting. According to the decree, the Ukrainian President instructed the working group to develop action plan in several days in order to transfer the Odessa-Brodi pipeline to averse regime from 2008 onwards, that is, to the European Union as it was indicted in the project. Ukraine completed the construction of the 674 km long Odessa-Brodi oil pipeline in 2002 with a capacity of shipping 14mln tons of oil in the direction of the western borders of Ukraine. The project originally offered shipping of the Caspian oil to the European consumers, however, the oil pipeline stood idle until 2004 as Ukraine could not find oil suppliers. In mid-2004, Uktransnafta and TNK-VR signed 3-year agreement on the reverse use of the pipeline with shipping capacity of 9mln tons of oil annually in the direction of onshore oil terminal South in the Black Sea port of Odessa. The first tanker with a transit oil left South terminal at the end of September 2004.
A total of 22.036mln tons of crude oil have been shipped from late 2004, when the reverse use of the pipeline began, to 1 May 2008. Ukraine was paid some $226.3mln as a transit charges and harbor dues. In 2007, some 9.056mln tons of have been shipped in reverse regime via the Odessa -Brodi pipeline, 3.418mln in 2006, 5.745mln tons in 2005 and 1.048mln tons in 2004. Consequently, the oil pipeline is now operating in reverse regime and quite successfully. It means that we are once again can be sure that the shipping of oil via Odessa-Brodi oil pipeline is more political and matter of national interests.
The pipeline, which Ukraine tries to fill up with oil in order to transport it to West, requires approximately 7-8mln tons of oil, the experts believe. Ukraine is relying on Azerbaijan and Kazakhstan to realize this plan. It is expected that there will be excess of oil in Baku-Tbilisi-Ceyhan oil pipeline for two years which will be directed to Odessa-Brodi oil pipeline. Kiev and Baku plan to sum up the work on the project of transportation of the Caspian oil to Europe via Odessa-Brodi oil pipeline in early June. Azerbaijan has announced that it is ready to supply 3mln tons of oil annually. However, it is evident that this volume is not enough for self-repayment. According to Oleg Dubin, the chairman of the Board of Directors of Naftogaz Ukraina, 450,000 tons of light technological oil should be shipped to the oil pipeline in a direct regime and Urals oil should be pump out from the pipeline in order to start the pipeline. Ukraine and Azerbaijan have agreed to supply 470,000 tons of light technological oil in order to supply to the Odessa-Brodi oil pipeline.
The new feasibility study of the Odessa-Brodi-Plotsk-Gdansk has been developed on the basis of the similar document drawn up earlier by the order of the European Commission. Moreover, it has been developed taking into consideration the establishment of modern oil refining complex in Ukraine which requires Azerbaijan's support once again. According to Yushenko, Ukraine offers Kazakhstan and Azerbaijan to consider the possibilities of participation in the realization of the oil refining projects in its territory. Yushenko stated that Ukraine is interested in the development of the oil refining sphere; therefore it offers Kazakhstan and Azerbaijan to study the possibilities of the reconstruction of the current oil refineries and construction of new ones. The Ukrainian President stated that the possibilities of use of the Ukrainian underground gas depots for more reliable gas supplies to Europe will also be discussed. Here the gas depots located in west of Ukraine with a capacity of over 30bln cu. meters meant. "We think that it is one of the infrastructure factors of the European energy market which should operate on our common conception," Yushenko said.
The convincing speech of the Ukrainian President yielded results as Ukraine reached agreement with Azerbaijan on a number of issues. At the end of the Energy Summit, apart from the above-mentioned issues, the parties decided that two Ukrainian oil refineries (Nadviryanski and Drogobichski) in the west of the country will refine 5mln tons of the Caspian oil. The parties also reached agreement on the experimental pumping of the Caspian oil via Odessa-Brodi and onwards via Drujba oil pipeline through the Kralupi city of Czechia.
It is not trouble for Azerbaijan at all to help Ukraine in addressing energy problems. The country is rich in oil reserves. However, here arouses a question that a fiancee could ask: Were Ukraine interested in Azerbaijan to such extent, as a fiancee with good dowry, if we did not have hydrocarbon deposits?