Minister Novak-FM: “We see the risks in extending the contract with Ukraine on gas” – Russian Oil

«Oil of Russia», 20.04.16, Moscow, 22:58
Minister of Energy Alexander Novak broadcast Kommersant FM: “We see the risks in extending the contract with Ukraine on gas transit”

About the conditions under which Russia will be able to do without Ukraine for gas supplies to Europe.

“As for Ukraine, you know the position of the Russian Federation, now operates a contract, the contract, which ends the transit gas through Ukraine in late 2019, that is, from 1 January 2020 Russia is ready to hold further talks on the extension of this contract. But, you know, we see great risks on the extension of the contract, as is already the Ukrainian side expressed the need to directly today to increase the cost of transit by more than 2 times compared to today’s value. that is, it assumes that at the time of expiry of the contract, if there is, conventionally, some alternative infrastructure, the monopoly position of the Ukrainian side, in terms of availability of gas transport infrastructure, will enable them to put such questions again, which cost absolutely inappropriate, and may occur again, of complexity. ”

On whether the domestic gas market will become an essential element in the industry:

“Of course, we see the development of the internal gas market. And in terms of the use of gas as an energy source for our power plants, along with others, I want to say, not only the gas will be used as part of our strategy, but also coal, hydroelectric, renewable energy development “.

However, with the increase in gas demand will also be the source of growth and consumption in this area will grow the gas will be used more on the domestic market for the production of gas chemical products Another direction of development of gas -… as motor fuel ” .

on is whether “Gazprom” on the basis of its free cash flow to pay 50% as a dividend and will be any exceptions for state-owned companies on the amount of dividends:

“There government decree, which was signed yesterday, that state-owned companies have to pay a 50% dividend on the net profit. Questions individual approach, if any, they can be considered only on the

government level. “

about where the critical limit on the price of oil for the country:

“I’m asking this question today, our members in the plenary session of the National oil and Gas forum. When I first answer the question about the outlook for prices, the normal price. Normal price today is actually called from $ 40 to $ 50. The balancing price, only that the Venezuelan minister called $ 65-70, but this period is not 2016, and the 2017-2018 year, when it was already rebalancing occurs. As for the critical price for Russia, you know, tough question. Because it needs to be considered in terms of criticality for whom: for companies, or for the economy or for the budget therefore is more important, perhaps, argue, what the price is critical or not critical for the budget “

.”. Because for us it is critical to the cost of oil. And the cost of we have one of the lowest out there in different fields it ranges from $ 2 to $ 15 for the most expensive projects. So here we are competitive and the industry virtually any price “ Read more on uncritical http://www.oilru.com/news/512703/