Ukraine reportedly duped on $1bn gas deal

One of Ukraine’s steps to energy independence quickly turned into a fiasco after signing a $1.1 billion deal on joint construction of an LNG terminal on the Black Sea. Kiev is now trying to figure out with whom it actually signed the contract, Russia Today reports on Wednesday.

Earlier this week, the Ukrainian authorities announced that they had signed a contract with Spanish energy company Gas Natural Fenosa to create a joint venture to develop an LNG terminal. The deal, widely reported in the country’s media, was signed in the presence of Prime Minister Mykola Azarov, Energy Minister Yuri Boiko and Vlad Kaskiv,
head of Ukraine’s state investment agency.

According to the press release, the Director General for Communications at Gas Natural Fenosa (Spain), Jordi Garcia Tabernero, signed the contract for the Spanish side. However, the FT identifies the man as Jordi Sarda Bonvehi, citing Ukraine’s state investment agency.

But Gas Natural Fenosa officials later said that none of its representatives had taken part in the ceremony and that Bonvehi doesn’t represent their company or affiliated structures, and the company wasn’t aware about the project and had no plans to participate.

Now Ukraine is checking whether a person identified as a representative of Gas Natural Fenosa had legal authority to sign the deal on the joint venture, the Ukrainian Energy and Coal Industry Minister Yuri Boiko said.