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a platform for Europeansecurity architecture 
BLACK-CASPIANSEA REGION AND EUROPEANENERGY SECURITY
November 6-7, 2008
 
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SECOND KYIV SECURITY FORUM
Arseniy YATSENYUK,Ex-Speaker of the Parliament of Ukraine,Founder of Open Ukraine Foundation
Dear Friends!...In recent times, energy ceased to be a commodity, it became an elementof eternal policy. One of the greatest challenges of the world has beenthe so-called energy independence. Energy independence is nothing buta myth. All participants in the energy market are etremely dependent oneach other. …In this vicious circle we should develop an energy policythat we lack today.…When the price of oil reached a critical level of $148 per barrel, it de-creased to $60. I am sure that this price is a short-term phenomenon, and
FROM THE FOUNDER OF OPEN UKRAINE FOUNDATION
 
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SECOND KYIV SECURITY FORUM
during the second half of the year 2009, the price of oil will be about $100. During this period weshould act. We have the best chance for energy dependent countries to develop their energy policyand make a constructive decision on what their and the world energy policy should be like.…After the financial crisis and after the significant drop of energy carriers’ prices, all transportprojects were frozen. If they were not frozen publicly, they were frozen in an unofficial way. This will lead us to an inability to diversify energy supply sources, continuing dependence on the traditional suppliers and correspondent risks related to eploitation of the old transport corridors. …Becauseof the price situation on the eternal market, there is no sense, from an economic point of view, todevelop any alternative or renewable energy sources when the price of oil is $60. It means that ina short-term perspective, we will face more problems: if the price of oil increases, and it is sure toincrease, we will face the problems of dependence eceptionally on traditional energy sources. The situation with oil production is not so bright. ….sooner or later the world will face the problemof scarce energy resources. In its turn, it means that in the future there will be a dictatorship bysome monopolist countries again, and we should start preparing for it already today.It is very important to ensure global security on the energy level. …The number one priority forthe WTO should be elaborating energy rules to be followed by everybody. The Energy Charter is avery good document, but, unfortunately, it is mostly a declarative document not covering the mainproducer, transit and consumer countries. That is why working out energy market rules within WTOframeworks is a priority task for ensuring energy security. …We should also improve the EnergyCharter by developing effective controlling and fulfilling mechanisms, by involving all the countriesworking on the energy market and enjoying their monopoly in one or another sphere into participa-tion and ratification of this Treaty.With regard to the European Union, unfortunately, the so-called Common Policy of the EU in theenergy field has not been established yet. But we hope that when the Lisbon Treaty is ratified andwhen all the mechanisms of internal cooperation within the EU are installed, Europe will form itsCommon Energy Policy, and Europe will have clear approaches stipulating Ukraine’s active participa-tion in the European energy policy.Today Ukraine has a very good chance to be not only a transit country but also a country thatactively participates in different investment projects. Such projects should provide for EU’s, Rus-sia’s, Turkmenistan’s, Uzbekistan’s and Kazakhstan’s participation. All the process participants mayachieve success only in unity… On Ukraine’s energy market, a lot has been done in the recent pe-riod. I would like to stress that it is necessary to revive the energy monopoly of Naftogas of Ukraine.We need direct contracts, direct relations with suppliers and consumers. Ukraine also needs a clear,independent and efficient energy regulator setting rules on electrical energy, gas and oil markets.…Two years ago Ukraine occupied the first place in the world by energy consumption level. In sucha situation, regardless of the price of energy resources, we will not be able to survive. That is whythe issue of energy efficiency, reducing the energy consumption level, is the priority task for theUkrainian state as a whole.Thank you for your attention. I invite everybody to the discussion!
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