Thursday, January 15, 2015

Paradoxical conclusion from the EC scheme of gas supply is unreliable without Ukraine – RosInvest.Com

Paradoxical conclusion from the EC scheme of gas supply is unreliable without Ukraine – RosInvest.Com

Четверг, 15 января 2015 г.

The first visit to Moscow in Maroš Šefčovič Vice-President of the European Commission Energosoiuz hardly be called productive. European officials planned to discuss with Russian counterparts a number of issues, including the signing of a new agreement on Russian gas supplies to Ukraine in spring and summer, as well as the fate of the project “South Stream”. But something went wrong.

Russian side does not see the need for new agreements on gas for Ukraine, as there is a valid contract. Moreover, “Gazprom” has once again announced its intention to build a gas pipeline to Turkey instead of Bulgaria and improve the reliability of gas supplies to Europe, sending a “blue fuel” to bypass Ukraine.
European officials, apparently, was so surprised by developments that called the intention of “Gazprom” “damage the company’s image as a reliable supplier.” This sta tement was made Shefchovich at a press conference following his visit to Moscow and to communicate with the head of “Gazprom” Alexei Miller, Energy Minister Alexander Novak and Deputy Prime Minister Arkady Dvorkovich.

In response Novak recalled that “Gazprom” for decades to fulfill its obligations to supply gas to Europe. We can not talk about changing the image of the Russian public company, said the Russian minister.

EU countries that receive a significant share of its gas from Russia through Ukraine, in the summer of 2014 expressed concern about security of supply. “Naftogaz” without funds for the purchase of gas, could not create sufficient reserves for the winter. There was a real threat of a repeat of 2008-2009, when the Ukrainian side started siphoning off gas from the transit pipeline. The situation in 2014 was resolved only after five months of negotiations with the active participation of the EC.

Turkish stream

Head of “Gazprom” on Wednesday informed the Vice-President of the European Commission’s decision to redirect Russia fully volumes of gas going to Europe through Ukraine, on the border of Turkey and Greece to reduce transit risks.

Russia in early December announced the cancellation of the project pipeline “South Stream”, which should pass under the Black Sea and through Bulgaria to deliver fuel to the Balkan republic and Hungary, Austria and Italy. The project was abandoned, including from non-constructive position of the European Union. Instead, it was decided to build a pipeline to Turkey and build on the border with Greece gas hub for Southern European consumers.
The main objective of the project “South Stream” was also the diversification of routes of Russian gas supplies to Europe to improve reliability. “Gazprom” has repeatedly stated that after the launch of the “ ;South Stream” the need for Ukraine as a transit country for Russian gas to Europe will disappear.

Miller after a meeting with Vice-President of the European Commission, told reporters that the gas pipeline project “South Stream “closed and Europe have no other options removing risks of gas transit through Ukraine, except for a new gas pipeline” Turkish stream “.

” He (Miller) informed me of the decision completely redirect gas supplies, which now go through Ukraine, Turkey. Frankly, I was very surprised by this announcement because I came here to explore opportunities for South-Eastern Europe after the cancellation of the project “South Stream”, – told reporters Shefchovich.

He explained, that the news was not something that will be built “Turkish Stream”, and the information that the gas, which is now in transit through Ukraine, will be redirected to the new pipeline. Shefc hovich noted that it was a large enough volume of gas that, ” probably do not need Turkey and the countries of Southeast Europe “.

Time waits

Head of” Gazprom “, in turn, noted that the company had informed its European partners about the plans to send to “Turkish Stream” gas in the volume of 63 billion cubic meters per year, which is now available through Ukraine. The objective of the EU is the creation of necessary infrastructure on the border of Turkey and Greece, Miller said.
According to the head of “Gazprom”, the construction of infrastructure is the maximum number of years. “It’s very, very tight schedule. In order to meet these deadlines, work on the construction of new gas pipelines in the EU should be started today. Otherwise, these volumes of gas can be in other markets,” – said Miller.

Shefchovich believes that the creation of a system for receiving R ussian gas to Europe on the border of Turkey and Greece requires a long detailed study in the working group at the highest level. He suggested Novak continue to exchange opinions on this subject.

Gas for Ukraine

As for gas supplies to Ukraine itself, Russia sees no relevance in the new arrangements for the period after April 1, as there is a valid contract, said Minister of Energy Novak.

Shefchovich Earlier in an interview with RIA Novosti before his visit to Moscow, said he believes the need for early discussion of the year plan deliveries of “blue fuel” from Russia to Ukraine and the achievement of arrangements until the end of winter.

According to the Minister of Energy of the Russian Federation, in the current agreement – the so-called winter package – actually reflect the conditions of the existing contract between “Gazprom” and “Naftogaz”.

Speaking on the perform ance of the “winter package” gas agreements with Ukraine and the European Commission signed in Brussels in October, Novak said that he had discussed the matter with Shefchovichem and they agreed that this agreement is carried out, extinguished debt, made the current gas supplies to Ukraine as well as European consumers.

Russia resumed gas supplies to Ukraine on December 9, after nearly a six-month break. Ukraine, in accordance with the agreements listed Russia 3.1 billion from $ 5.3 billion debt for gas. In this case “Naftogaz” made in early December 2014 an advance payment of 378 million dollars for 1 billion cubic meters of gas, whereas previously stated its intention to pay for the supply 4 billion cubic meters of gas. In late December, “Naftogaz” has shifted $ 150 million advance payment for January.

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