YKIMS*

A good write-up on today's business-like Putin-Tymoshenko meeting from AFP here.

Today's 'Kommersant' predicted earlier that Tymoshenko would propose formation of a new gas consortium to Putin.

Here are excerpts from the article:

"Mr. Oleksandr Hudyma [a BYuT parliamentary deputy and fuel and energy adviser to the PM] stated that the Ukrainian side intends to propose a joint project to increase the capacity of the Ukrainian gas transit system [GTS]. By reconstructing the Ivantsevychi-Dolyna pipeline and constructing a Bogorodchany- Uzhgorod pipeline, with minimal investments of the order of $350million, it will be possible to increase gas transit capacity by about 30Bn cubic meters of gas p.a. The new infrastructure would be managed on parity principles by 'Gazprom' and 'Naftogaz' - the joint project investors. [The capacity of the proposed Nord Stream Baltic pipeline is of a similar order - but its cost would almost certainly exceed $10Bn..LEvko]

'Naftohaz' press- secretary Valentyn Zemlyansky yesterday stated: "We greet the participation of Russia in the modernization of the GTS of the Ukraine, the form of this participation must be determined by the premiers of two countries".

Director of East European Gas Analysis Mikhail Korchemkin, commenting on the benefits, said, "Since the beginning of the year the consumption of Russian gas in the EU countries has reduced by almost 60% and there is no sense building new gas pipes [Nord stream, South stream..any other stream?]. Far more realistic to invite Gazprom to invest in the modernization of Ukrainian GTS, whilst preserving a low tariff for pumping gas."

YKIMS* - acronym for "you know it makes sense"