Saturday, December 6, 2014

The US and EU were sitting on the tube – BBC

The US and EU were sitting on the tube – BBC

Russia accused Ukraine of violating WTO rules because of the refusal of the authorities of the country to prevent companies from the Russian Federation to the acquisition of a stake in its gas transportation system. In Kiev, do not want to sell part of the network of “Gazprom”, counting on the participation of investors from the EU and the US. The new company – GTS operator can raise the question of raising rates for the transit of Russian gas or at all close to the pipe repair, experts warn.

Russia opposes the sale of a stake in the management of the Ukrainian gas transportation system to foreign investors. On Friday TASS reported citing the head of the Department of Trade Negotiations of Economic Development Maxim Medvedkov. According to him, the Council for Trade in Services of the World Trade Organization, held in late November, the Russian side said that the law on the sale of the Ukrainian GTS, which was adopted in August, is not consistent with the obligations of Kiev in the WTO.

«We have analyzed the situation and came to the conclusion that Ukraine is in breach of its obligations, – the official said. – We have made the statement that this legislation is contrary to WTO rules, and offered to cancel ».

The Ukrainian side, according to Medvedkov, the law does not consider this a violation of its obligations.

His dissatisfaction with the new Ukrainian law on the reform of the gas transportation system Moscow expressed in August, immediately after its adoption. As part of the planned reform of the management of hydraulic structures will be transferred from the state to the operating company, in which up to 49% can be purchased by foreign investors from the United States, the European Union or the European Energy Community. In addition, the new law requires the establishment of the operating company (also with possible participation of residents of the US, EU and EEA), which will run underground. Both of them must be created prior to 2015.

Earlier, Ukrainian “Naftogaz” reported that in talks with a number of bidders for a stake in the GTS. According to unofficial information, among them figures the American Chevron, but the company declined to comment on the rumors.

The need to create a consortium to manage the GTS spoke once more, Viktor Yanukovych, offering to participate in it, and Russia. However, the “Gazprom” wanted to get into the ownership of at least 50% of the network (such as was the case with Belarus’ Beltransgaz “, which later became the property of a fully” Gazprom “). Later versions were offered a tripartite consortium to manage gas transportation system with the participation of European companies, but Russia has refused, and from this option.

But the presidential administration and the government Poroshenko Yatsenyuk Russia’s participation has excluded, which caused a sharp protest in Moscow.

After the adoption of the law on the reform of the Ukrainian GTS State Duma deputy Andrei Kruglov sent a request to the head of the Ministry of Energy Alexander Novak and Minister of Economic Development Alexei Ulyukayev, in which he proposed to consider the possibility of filing a complaint with the WTO action Kiev because of “infringement of the rights of Russian companies with the corporatization of the gas transportation system».

Kruglov noted that when entering the WTO Ukraine has an obligation, under which Russian companies should be granted access to the market of services for gas transportation and storage without the possibility of imposing any restrictions. Possibility of introducing a ban on the participation of vertically integrated companies in the Ukrainian gas transportation system (in particular, “Gazprom”) also provides for the obligation of Kiev in the WTO.

«Russia is unhappy that the Ukrainian gas transport system can have a new manager who can have an impact on the transit, “- said” Gazeta.ru “zavsektorom Economic Department of the Institute of Energy and Finance Sergei Agibalov.

« For example, the operating company with American or European owners will be able to manipulate the transit areas, covering some of them for repairs ».

«In addition, the operator can raise the question of raising transit fees, citing the need to repair all the same” – warns Agibalov.

In the modernization of the Ukrainian gas transportation system really needs. Currently it is worn to 65%, depending on the site. According to various estimates, the reconstruction will cost $ 10-15 billion.

However, not all experts agree with this view. Head of National Energy Security Fund Konstantin Simonov believes that in fact a threat arrival of foreign investors to the management of the Ukrainian pipeline to Russia is not too high.

«Claiming to waive the” South Stream “, Vladimir Putin said on the construction of an alternative pipe through Turkey – like the head of the NESF. – It is clear that the exclusion of Ukraine from the transit chain by 2020 – and in 2019 ends with a valid transit contract – is a fundamental issue for Moscow. Without Russian gas Ukrainian gas transportation system is of no interest, so that there are serious doubts that foreign investors want to buy the asset ».

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