Russian oil deal could sink subsidized pipeline for Poland

U.S. oil giant Chevron, which is exploring the Caspian Sea resources, is ready to subsidize the extension of the Caspian oil pipeline from Ukraine to Poland. But an agreement made on Wednesday between Russia and Ukraine could render the plan pointless. The new deal envisages a 50% increase in transit of Russian oil through Ukraine, up to a maximum of 85 million tons a year. The implication is that the Odessa-Brody pipeline would be used to transport Russian oil to the Black Sea, rather than in the opposite direction, as initially planned. It would prevent the extension of the pipeline and pumping of oil to Poland and further afield. The pipeline from Brody to Poland would cost around $340-$450 million. The UkrTransNafta firm and Polish oil pipeline company PERN "Przyjaźń" would be unable to finance even half that figure by themselves. (Rzeczpospolita, p.B1) T.J.