BRUSSELS, 9 Dec. /TASS/. A trilateral meeting between Russia, the EU and Ukraine to discuss Russian gas supplies to Ukraine and its transit to the EU this winter has not completed the practical arrangements, however, the negotiators parted with a positive attitude and a clear perspective will meet again in the same format.
the discussion was attended by Russian energy Minister Alexander Novak, Deputy Chairman of the Commission for the Energy Union Maros Sefcovic, and Minister of energy and coal industry of Ukraine Igor Nasalik. In addition, the meeting was attended by Deputy head of “Gazprom” Alexander Medvedev and the head of “Naftogaz” Andrey Kobelev.
the Talks on Friday were the most short with the appearance of this format in 2014 – the meeting lasted about three hours. The longest trilateral meeting lasted more than 10 hours.
Cheaper reverse gas
Russian energy Minister Alexander Novak was optimistic – Kiev, according to the Minister, is interested in buying 1.5 to 4 billion cubic meters of Russian gas at the price prescribed in the current contract. In addition, said Novak, is significantly lower than the prices offered by European traders.
“this time we have no disagreement on the price, because both the Ukrainian and Russian parties acknowledge that the price of gas, which is formed in this quarter, particularly in December, in accordance with the formula under the contract, it is absolutely competitive. The price of gas is below the price formed in the spot markets,” – said the Russian Minister.
Recall that from November 2015 Ukraine ceased to buy Russian gas at current until 2020 the contract with “Gazprom”. Instead, Kiev took the decision to buy gas from European suppliers for reversible circuits. In the first quarter of 2016, all imported gas came from them.
on Friday, the sides agreed to continue contacts, in particular, consultations will need to hold “Gazprom” and “Naftogaz”.
Ukraine is satisfied, but buying gas is not ready
the Minister of energy and coal industry of Ukraine Igor Nasalik after talks with maroš Šefčovič told reporters he was pleased with the meeting. However, the negotiating table, the Ukrainian Minister left an hour before their official end and left for the airport.
Another representative of the Ukrainian delegation – the head of “Naftogaz” Andrey Kobelev – dosidel to the end and found time to communicate to journalists. According to him, the meeting was not signed any documents, including the supplementary agreement to the existing contract with Gazprom, which insists the Ukrainian side.
Without an additional agreement to buy Russian gas under the existing contract between “Gazprom” and “Naftogaz” KOBOLEV said, but expressed the hope that in the future it will be possible to reach agreement with the Russian monopoly. Thus, the basic contradiction of the parties have not yet overcome.
Serious contradictions
Between Ukraine and Russia have serious differences on the gas issue. Thus, the head of Naftogaz said earlier that the company is ready to buy Russian gas not only provided the best price, but also the signing of the additional agreement to the current contract.
In particular, in the additional agreement, in his opinion, should be settled the price of supplies, and prepayment must occur only in Kiev the necessary volumes of gas. KOBOLEV said that, according to the agreement signed in 2009, “Naftogaz” is obliged to pay in advance the whole volume of gas in accordance with the contract. The company insists on the abolition of the terms “take or pay”. In addition, delivery should be carried out in uncontrolled Kiev territory of Donbass.
Russian energy Minister was adamant and said that the transportation of gas will be held strictly in accordance with the applicable contracts, and in Brussels, the parties will discuss only the needs, volumes and terms of deliveries, but not the revision of the contract or the signing of additional agreements.
Experts believe that given the political relations between Kiev and Moscow, as well as numerous disputes over the contract for the transit (the Ukrainian authorities repeatedly stated their intention to increase the cost of transit), there is a serious risk that the current transit agreement can be broken at any moment and will not be renewed on mutually acceptable terms.
in addition, following the meeting, Novak spoke out against Antimonopoly investigation against “Gazprom” in Ukraine, which, in his view, creates new risks for gas transit to European consumers, including due to the possible decision of Ukraine to impose the appropriate penalty.
According to the Minister, Russia is deeply concerned by the decision of Economic court of Kiev on the penalty of $ 6.6 billion and says it is absolutely illegal decision, as it was not taken by the Stockholm court.
Money is
According to the source TASS, currently Ukraine has about $ 700 million granted as international assistance, which can be used for the purchase of Russian gas in winter.
“Ukraine has sufficient funds to purchase Russian gas in the winter if need be. We are talking about the amount of about $ 700 million that was provided in the form of international assistance through various channels,” – said the source Agency.
At the November meeting with maroš Šefčovič, the head of the Russian energy Ministry stressed that Russia is not going to give Ukraine any preferential treatment for the supply of gas and reminded that in the framework of the existing contract provides for an advance payment.
however, Novak assured that the purchase of Russian gas to Ukraine will be cheaper than in Europe, at $ 15-30 per 1 thousand cubic meters. In turn, Sefcovic told the Russian Minister that Ukraine has funds for the purchase of gas, and soon it will be allocated additional funding. In particular, we are working with the world Bank, which may provide for purchases of Russian gas of $ 500 million. in addition, up to 200 million euros, Ukraine should receive from the European Bank for reconstruction and development (EBRD).
transit everything is fine
the Final statement of the European Commission has also been positive, since Brussels had been assured all participants that the transit of Russian gas to Europe this winter will be uninterrupted.
“All parties welcomed the opportunity to discuss today in Brussels on gas supplies to Ukraine and gas flows to the EU this winter. Confirmed all obligations to work closely together to provide gas flows from Russia to Ukraine and gas transit to the EU. In this context, agreement was reached that consultations would continue at all levels,” the statement said the EC.
In turn, Šefčovič stressed that “the trilateral format has reaffirmed its usefulness,” and the European Commission in the future ready to assist in these negotiations.
“Significant progress has been made for the sale and purchase of gas, but there’s still work that needs to continue. The parties were close to an agreement and will now have to focus on its format. I received assurances that the dialogue will continue,” – said the Deputy head of the European Commission for Energy Union.
History
In late 2008, when the agreement on deliveries of Russian gas to Ukraine has expired, the parties were unable to finalize a new agreement before December 31.
as a result, Gazprom had cut off gas supplies to Ukraine due to the absence of any contractual Foundation. But Gazprom continued the transit of the necessary volumes of natural gas to fulfill its obligations to European consumers.
“Naftogaz” began to take part of the transit gas, which led to serious disruptions of gas supplies to Europe in history in the midst of winter.
In 2015, the European Commission first acted as a guarantor of financial resources to Ukraine to buy gas in the current heating season. In the result of tripartite negotiations between Russia, Ukraine and the European Commission, the European investment Bank and the world Bank has provided Ukraine with loans of $ 500 million for the purchase of 2 billion cubic meters of gas from “Gazprom” for injection into Ukrainian underground gas storage facilities. Ukraine in winter, using gas in underground storage in the West country for transit of Russian gas to Europe.
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