Saturday, December 10, 2016

The gas in the tube will not go – merchant

Yesterday Russia and Ukraine in Brussels failed to agree on Russian gas supplies. As predicted by “Kommersant”, in the debate raised the issue of abolition imposed on Gazprom by the Ukraine anti-monopoly fine of $ 6.6 billion, but Kiev is not ready to give it up in exchange for a suitable scheme of gas supplies. Negotiations are now likely to resume towards the end of winter, when problems with filling Ukrainian gas storage facilities will become more tangible.

Russia and Ukraine on Friday resumed in Brussels under the mediation of the European Commission gas talks could not reach any agreement. In fact, the parties remained in their original positions. “Naftogaz of Ukraine” is ready to buy gas from “Gazprom”, subject to the signing of the additional agreement to the contract of 2009 with the cancellation conditions take-or-pay. “Gazprom” was ready to sell gas, but did not want to sign a supplementary agreement. Following the talks, the head of “Naftogaz” Andrey Kobelev noted that the parties ‘ positions have not changed. He stressed that “no additional agreement to the gas contract between “Gazprom” and “Naftogaz” impossible.”

In this case, as predicted by “Kommersant” on December 9, the Russian side was ready to compromise, if Kiev agreed to repeal the antitrust fine of $ 6.6 billion, payable to Gazprom for alleged violations of the Ukrainian “market of transit of gas.” Minister of energy of Russia Alexander Novak on the results of the talks confirmed that they raised the question of penalty. He also stated that he gave the Vice-President of the EC on energy Union (representing Europe in the negotiations on gas) Maros sefcovic the letter, which pointed to the illegality of the actions of the Ukrainian Antimonopoly regulator and the decisions of the local courts. “This decision creates new risks of gas transit through Ukraine”,— stated the Minister, adding that similar letters were sent to the governments of the European countries that receive Russian gas through Ukrainian transit. It Slovakia, Poland, Hungary, Bulgaria, Romania, Greece, A ustria and Italy, as well as non-EU Turkey, Macedonia, Serbia, Bosnia.

Therefore, Russia is trying to organize pressure on Kiev from the EU to overturn the decision on the penalty. “Gazprom” considers the penalty illegal, but possible attempts of Kiev to get his penalty in those countries where the Russian company has property, you can give her a lot of trouble. If Kiev will pay a penalty on the only significant assets of “Gazprom” to Ukraine and transit of gas for the EU, this may lead to a full-scale gas crisis.

Alexander Novak said that the negotiations on gas purchases will be to lead between “Gazprom” and “Naftogaz”, but the date of meeting is not mentioned. Maros Sefcovic escaped with a diplomatic statement that “with the assistance of the EC has made significant progress” and the sides “were close” to an agreement, but now need to discuss the “format agreement”.

As noted by “Kommersant”, the failure of the meeting in Brussels was expected, but delaying negotiations more beneficial to Moscow. In late January — early February, the reserves of gas in Ukraine will be significantly lower than now (13.2 billion cubic meters), and the need for the purchase of Russian gas may become urgent, as the lifting gas from UGS is not enough for transit. By the time the Stockholm arbitration court, most likely, will make a verdict on the dispute “Gazprom” and “Naftogaz” contract from 2009 (Gazprom demands from Naftogaz $ 38.7 billion, “Naftogaz” from “Gazprom” — $ 18.1 billion). It is possible that the arbitration decision will strengthen the position of “Gazprom”, but any outcome trials significantly change the positions of the parties and will create a new situation for negotiations.

Yury Barsukov


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