Question of transit agreement
Ukraine insists on two conditions when concluding a new gas transit agreement with Russia. This was stated by Ukrainian Prime Minister Alexei Goncharuk at a briefing.
“The first is European rules. The second is a long-term transit issue, because it is a security issue. Everything else is a matter of negotiations between commercial entities, companies, ”Goncharuk said.
In addition, Naftogaz said that December 13 is the deadline for concluding a gas agreement. At the same time, Russian officials, in particular, Vladimir Putin, indicated their readiness to conclude an agreement on European standards.
We also recall that earlier Gazprom sent Naftogaz its proposal for a new agreement. One of the conditions of the Russian corporation was the mutual rejection of claims by the parties and the termination of all legal proceedings. However, in Ukraine this proposal was called "unacceptable."
The situation was commented on in the Kremlin. They noted that Gazprom and Naftogaz are continuously working on a new agreement, however, “there is not enough time.”
“There is an exchange of commercial offers. You know that, in particular, Miller said yesterday (Gazprom head Aleksey. - RT ) Miller after the meeting with Putin, our proposals were formulated and transmitted to the Ukrainian side, we are in time trouble, time is running out, ”said Russian President’s Press Secretary Sands.
On the eve of the head of Gazprom, Alexei Miller, following a meeting with Russian President Vladimir Putin, indicated that Kiev had not yet certified the gas transmission system in accordance with EU law. Recall that, according to EU standards, the GTS operator must be a separate legal entity that does not belong to the energy producer company. According to the Minister of Energy and Environmental Protection of Ukraine Aleksey Orzhel, the final separation of the two structures should occur before December 26.
The State Duma believes that a long-term agreement in the context of the current relations between Russia and Ukraine is hardly possible.
“Such long-term contracts are signed by trading partners who trust and are confident in each other. And what kind of trust in Ukraine can we talk now? Therefore, Miller wants to conclude a short-term agreement that would solve problems here and now, and not ten years in advance, ”explained Igor Ananskikh, First Deputy Chairman of the State Duma Committee on Energy.
- Archival photo of 2014. Chairman of the Management Board of PJSC Gazprom Alexey Miller and Head of NAK Naftogaz Ukrainy Andrey Kobolev
- © Francois Lenoir / Reuters
Obstacles in negotiations
The current contract for the transit of Russian gas through Ukrainian territory ends on December 31. If Gazprom and Naftogaz still can’t agree to conclude a new contract before this point, in January Ukraine and Europe will still not have a shortage of fuel due to previously accumulated gas volumes in storage facilities. This point of view was expressed by the director of the Energy Development Fund Sergey Pikin.
“In Ukraine, now more than 21 billion cubic meters is an unprecedented volume in recent years, usually more than 14-14.5 do not accumulate for the winter. Therefore, January is not such a problem month, you can pass it, even if something does not grow together somewhere. Europeans also have all gas storages to the eyeballs, ”the expert notes.
Experts point out that besides the technical part, the negotiators will need to settle other aspects. According to Stanislav Mitrahovich, an expert at the National Energy Security Fund, a professor at the Financial University under the Government of Russia, Kiev’s tough stance prevents reaching an agreement.
“The obstacle is that each side seeks to achieve maximum benefits, including Ukraine, although Ukraine is a weaker side in this conflict. Therefore, their attempts to maximize their own benefit without any concessions on their part ultimately prevent the conclusion of an agreement, ”the expert explained to RT.
Litigation
In addition, on November 27, the Swedish Court of Appeal Svea rejected Gazprom’s complaint about the decision of the Stockholm arbitration in a dispute with Naftogaz on the supply of blue fuel to Ukraine.
“It is expected that decisions on two more cases in court between the same parties will be taken in 2020,” the report said.
Naftogaz called this position of the judicial authority “victory”. In addition, the head of the Ukrainian company, Andrey Kobolev, clarified that the court rejected the appeal of Gazprom against the decision of the Stockholm arbitration on May 31, 2017 regarding the take-or-pay provision.
“In addition, the court then determined that Naftogaz has the right to adjust the price calculation formula in accordance with the market situation. The 2017 decision also lifted the ban on gas re-export, ”he wrote on Facebook.
Recall that, according to the decisions of the Stockholm arbitration, Gazprom must pay the Ukrainian side about $ 2.56 billion.
The decision of the Swedish court is asymmetric, which raises the issue of its bias towards Russia, Pavel Zavalny, chairman of the State Duma committee on energy, said in a conversation with RT.
“Satisfying our appeal could remove many problems of interaction and cooperation, including for the leadership of Naftogaz,” the parliamentarian emphasized.
- Archival photo of 2014. Chairman of the Management Board of PJSC Gazprom Alexey Miller and Head of NAK Naftogaz Ukrainy Andrey Kobolev
- © Francois Lenoir / Reuters
In turn, Stanislav Mitrakhovich notes that the rejection of the appeal “is not enough to completely outplay Russia in a litigation, it’s just a victory in the round of the game, but not a victory in the whole game.”
“Ukraine will lose anyway, because now there are alternative ways to supply Europe with gas. There are some problems with Moldova, but most of the European states can be supplied with alternative routes. There is liquefied gas, Nord Stream, OPAL will open at full capacity in case of interruption of transit, ”RT interlocutor concluded.
Litigation does not help advance negotiations, said Ukrainian political scientist and economist Alexander Dudchak.
Naftogaz is trying to get unearned income from Gazprom, claiming new claims and initiating new lawsuits in international courts. This is a completely unconstructive position. It interferes with solving problems ... It is difficult to imagine how it is possible to agree and coordinate positions for the remaining time, to reach compromises, especially after demanding compensation for unearned income in the amount that Naftogaz wants, ”the political analyst said in an interview with RT.