Poland and Ukraine sign Odessa-Brody pipeline deal

Poland and Ukraine yesterday signed an agreement under which the Odessa-Brody pipeline will be extended to the refinery in Płock. Thanks to the investment, which will amount to EUR 450 million over the next three years, oil from the Caspian Sea will be transferred through Ukraine to Poland and Western Europe. The eventual capacity of the pipeline is planned to be 25 million tons of oil a year. "The Odessa-Brody project ensures energy security for the enlarged European Union," said Layola de Palacio, Vice President of the European Commission. Marek Pol, the Polish Infrastructure Minister, underlined that the agreement finishes a long-lasting political dispute over the pipeline. "Ukraine received certain proposals from the Russians that were aimed at stopping the investment," reminded Pol. The new company that will be created to carry out the project, is expected to turn to the companies controlling oil fields or refineries (including Orlen and Grupa Lotos) for financing. (Parkiet, p. 8) M.K.