Ukraine plans to build terminal for liquefied gas in Black Sea

Ukrainian President Victor Yanukovych announced plans to build a terminal for liquefied gas on the Black Sea coast, Business Georgia said.

The project is worth about $2.5 billion and is planned for realization by late 2015. Kiev is negotiating liquefied gas supplies and terminal construction with France.

The Ukrainian Cabinet approved signing of an inter-governmental deal on liquefied gas supplies with Azerbaijan on Friday. Gas will be transported to the Black Sea water zone through Georgian ports. The government believes that the initiative will attract new gas exporters and form a mechanism of competition for gas imports, reducing prices.

Observers say that construction of the terminal is an effort of the president to reduce dependence on Russian gas. Ukraine is striving for reconsideration of gas contracts signed with Russia in 2009, calling them enslaving for economy.