Gdańsk pipeline deal

"All the political discussions have already taken place to enable this project to be extended to Gdańsk," Yuschchenko said. "Joint structures have been created with Polish, Kazakhstani, and Ukrainian representatives. The aim of these structures is to work out a plan in December to complete construction, launching the project in 2006."

Yuschchenko revealed that an agreement had already been reached to build a refinery in Brody on the Polish-Ukrainian border, which would require an investment of $3.5 (zł11.78) billion.

The Odessa-Brody pipeline - 674km long - was completed in 2002 and was originally designed to carry Caspian oil to European destinations. However, the Ukraine was unable to find suppliers so the project was reversed to carry nine million tonnes of oil each year to the Yuzhniy terminal near Odessa on the Black Sea.

After Yuschchenko ascended to power last year, Poland proposed extending the pipeline to Gdańsk to take oil westward. (Reuters)