Speech of Jacek Kluczkowski, Ambassador Extraordinary and Plenipotentiary of the Republic of Poland to Ukraine

Dear Speaker, dear Vice Prime Minister, dear colleagues! I would like to pass to you sincere regards from H.E. Mr. Radoslav Sikorski, Minister of Foreign Affairs of Poland. He could not participate in the Forum, and entrusted me with the mission to be here and to underline the importance of it, as well as wish you productive discussions for today and tomorrow.

I would like to focus on the issue of energy security of Poland and Ukraine, and to discuss common challenges and interests. Energy security became one of the most important problems of the modern world – security of supply, transit, energy efficiency, supply diversification, energy-saving and reduction of hydrocarbon emission became the subject for discussion by the world leading politicians. The future of our civilization depends on effective resolution of these problems. I would like to stress that it concerns not only energy. Mr. Speaker has already mentioned the food and the financial crises. The threat of nuclear weapons proliferation is also very important. However, energy security is the most significant problem in the long term perspective.

Ukraine and Poland are connected by strategic partnership that includes economic cooperation. Importance of energy cooperation is conditioned by great importance of energy for economies of both countries, and also by the fact that energy cooperation among all European countries gains more importance. Our countries are the main economic and political players in Central and Eastern Europe. That is why our responsibility for the format of future energy security in the region is much higher, than any other countries’ from this part of the continent. Ukraine is important for Poland, as well as Poland is important for Ukraine, and Ukraine and Poland together are very essential component for European energy supply. Ukraine and Poland face not only modernization of their transportation systems, but also renewal of their energy systems. This also contributes to strengthening of energy security.

We also should pay attention to differences between our countries. For example, Ukraine consumes five times more natural gas than Poland. Ukraine consumes the same amounts of oil and coal as Poland. This leads us to two conclusions. First of all, from the socialist economy we have inherited the economy structure that is more unprofitable for Ukraine than for Poland. But Poland faced the gas market price challenge earlier than Ukraine. Valentyn Pavlov, former USSR Prime Minister, was our “teacher” in energy economy. He made us work by market prices some 20 years ago. At that time it meant recession, unemployment and other numerous crises for us, however, now, we know how to save energy and use it efficiently. Nevertheless, notwithstanding all the differences, we simultaneously develop similar strategies of our countries’ development and energy security strategies. Currently, Poland works on the energy policy strategy till 2030; this strategy is similar to the Ukrainian one. The strategy is aimed at decreasing dependency on external energy sources, even though it is impossible to achieve, however, energy sources should be diversified. This goal should be achieved by using our own energy resources and supply diversification. Poland pays much attention to the development of national coal resources which are almost the biggest in Europe, and remain the main fuel for electric power industry; they also ensure energy security of production and supply of electricity of Poland.

Considering the great importance of coal for Polish economy, generally, we would like to coordinate our plans with European climate package. That is a serous challenge for our energy policy for the coming years. An integral part of Poland’s energy policy is implementation of projects aimed at diversifying supplies of raw materials. It should be mentioned that Poland sees diversification in oil, gas and liquid fuel area not as just diversification of delivery routes, but also as diversification of technologies targeted at more efficient use of fuel. The planned diversification activities include construction LNG terminal, participation in construction of the gas pipeline that will enable Poland to receive natural gas from different directions. I mean construction of the gas pipeline that will connect Denmark and Poland; signing the contract on gas and oil deliveries from the Norwegian continental shelf. Besides, we should not forget about investments in the energy infrastructure, about use of European funds’ investments, and about legislative actions aimed at reducing investment obstacles and enhancing mechanisms of crisis management.

The Krakow Initiative, the Krakow process mentioned by Mr.Sokolovskyi, is another evidence of joint contribution of Poland and Ukraine to energy security of our continent. The 1st Energy Summit initiated by the Presidents of Poland and Ukraine, took place in May of 2007, in Krakow. The meeting was attended by Presidents of Poland, Ukraine, Azerbaijan and Georgia, as well as representatives of other interested countries. The following meetings in Vilnius and Kyiv were of more practical character. We have agreed upon the next steps that should be made within the framework of implementation of Summit resolutions. First of all, we have established an organization, joint company (Poland, Ukraine, Azerbaijan, Georgia and Lithuania), which coordinates and projects actions of our governments and our national oil-transporting organizations, as well as prepares legislative and juridical basis for this project. Secondly, after the Kyiv Summit, President Yushchenko enacted a Decree on termination of reverse oil delivery from Brody to Odesa, which meant that we would come back to the plans made in cooperation with Ukraine at the end of 90s. In other words, this part of the oil pipeline (from Odesa to Brody) should have been part of Trans-European Oil Pipeline from the Black to the Baltic Sea. Unfortunately, for unknown reasons, the Decree has not been fulfilled yet. Nevertheless, I hope that we will see some positive changes in this area soon. Enactment on oil supplies from Azerbaijan and Caucasus might be the next step. I think there are serious supply guarantees from this region via Slovakia to the Czech Republic. In Czech Republic, in Kralupy, there is an oil refinery owned by National Polish Corporate Group, which is ready to process Caucasian oil. One more oil refinery in Lithuania is also owned by the same National Polish Corporate Group. This Northern direction either via Poland or via Belarus should also be open.

During our common work of the last 16 months we have transformed the idea into practically completed concept of common energy corridor. This concept ensures simultaneous availability of several directions: Northern, Ukrainian direction – to Western Ukraine, Western direction – through Slovakia to Czech Republic, and North-Western, via Poland to the Baltic Sea. We would like the project to be launched in the shortest possible time. It should be stressed that Poland does not change its attitude to the project. One of the most important tasks of energy security of Poland is developing infrastructure for oil transportation from the Caspian region. Here Ukraine is Poland’s a natural partner. In this regard, I should mention finished yesterday negotiations of the intergovernmental working group on Baltic-Black-sea-Caspian energy transit space issues. This group works on optimal model of cooperation among the states of this region on resource delivery and transit from Caspian region to Europe. In a couple of days next Summit in Baku will be held. I am persuaded that even the Caucasian conflict cannot prevent us from fulfilling our plans on constructing the system that will decrease our dependency on the monopolists.

Let me summarize. I have already mentioned the differences between Poland and Ukraine. Nevertheless, we have more common interests than differences. In spite of the fact that the reform implementation, as well as transformation of the energy systems are on different levels in our states, Poland and Ukraine face similar challenges in the energy field. Moreover, both countries similarly define their tasks in this area; both countries are interested in effective cooperation for enhancing energy security. We will fight together against attempts of using energy as a weapon against us by any country. I started my speech from politics, and I will finish with it as well. Strengthening energy security is an integral part of state sovereignty and independence guarantees for the states of Central and Eastern Europe. I am sure that we have good perspectives for reinforcing our cooperation in this field. We should work together for strengthening our independence, our sovereignty. Thank you for your attention.

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