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Russian Companies to Boost Gas Production in Crimea – Medvedev

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Russian companies could double gas production in Crimea in the next few years in a bid to secure the region’s energy independence, Russian Prime Minister Dmitry Medvedev said on Monday.

MOSCOW, MARCH 24 (RIA Novosti) – Russian companies could double gas production in Crimea in the next few years in a bid to secure the region’s energy independence, Russian Prime Minister Dmitry Medvedev said on Monday.

State-controlled Gazprom has already laid out plans for the increase, Medvedev said at a government meeting to discuss social and economic development in Crimea, which became part of Russia last week but depends upon Ukraine for critical utilities.

“According to expert analysis, this should cover Crimea’s electricity demands,” Medvedev said. “Gazprom has an initiative for this.”

According to official data, about 1.5 billion cubic meters of gas are extracted annually in the region, which is home to some of the largest offshore Black Sea deposits of oil and gas.

Although Crimea’s reunification treaty with Russia entered into force last week, the peninsula still relies heavily on energy supplies from mainland Ukraine.

“Crimea’s dependence on water and electricity supplies is yet another infrastructural problem. The issue will be settled through international negotiations. We need to choose the most efficient way to meet the peninsula’s needs,” Medvedev said.

The premier said that different options are currently being studied, including building a power plant on the peninsula or laying down electricity and water lines from Russia’s Krasnodar Territory, just across the narrow Kerch Strait from Crimea.

Russian Deputy Prime Minister Dmitry Kozak, who was tasked with taking charge of Crimean issues on Monday, said that Russia is ready to deal with possible blackouts.

“I would like to say that we are ready for emergency situations related to power outages,” Kozak said, adding that cuts in power by Ukraine would be unprofitable for the country’s energy sector.

“I hope that common sense will prevail,” Kozak said.

On Sunday, massive power outages rolled across Crimea, which, according to Ukraine’s national electricity company, were due to a power line breakdown. However, the region’s First Deputy Prime Minister Rustam Temirgaliyev said the blackout was a politically motivated action intended to intimidate Crimean residents and authorities.

Although the peninsula’s electricity supplies are currently operating normally, Russia has begun relocating nine large mobile generators from Sochi to the region.

A referendum on reunification with Russia was held in Crimea on Sunday, with over 96 percent of voters in the region backing the motion to leave Ukraine.

 

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