“Conflicting statements”: direct gas purchases from Russia allowed in Ukraine

The Ukrainian authorities admit the possibility of switching to direct gas supplies from Russia subject to certain conditions. This was announced by the Minister of Energy of the country Alexei Orzhel on the air of the Ukraine TV channel.

“For four years, we get the price of gas like this: the price of Europe plus transportation back, so we have one of the highest prices,” said the head of the Ministry of Energy.

“When we speak now with the Russian side, that is a clear position. We say that if we can agree on direct deliveries, in a package, in a package .. then the price should be tied to the European indicator, ”added Orgel.

The minister explained that the hypothetical price for Russian gas should be consistent with the tariffs set in European countries. At the same time, Orgel emphasized that Kiev was opposed to concluding a contract for gas supplies at a special, “political” price.

Recall that Ukraine directly purchased Russian gas until 2015. Then Kiev decided to switch to the so-called reverse supplies from the European Union. However, in fact, Ukraine has been receiving the same Russian gas all this time, being redirected to Ukrainian consumers on the border with the EU. In this regard, its price is much higher than the market. Gazprom has repeatedly noted that if Ukraine begins to directly purchase Russian gas, then its price for end consumers will fall by 25%.

The party of the former president of Ukraine Petro Poroshenko “European Solidarity” is categorically against direct purchases of Russian gas. Her deputies sent to the SBU a statement on treason against Orzhel because he had previously admitted the possibility of purchasing gas in Russia.

Poroshenko’s party also intends to submit to the Rada a draft resolution introducing a ban on direct gas supplies from Russia.

“For us, for European Solidarity, it’s important to help the authorities as much as possible to withstand this pressure from Russia and prevent the resumption of direct gas supplies from Russia. Therefore, we will initiate a resolution of the Verkhovna Rada of Ukraine, ”said MP Ivanna Klimpush-Tsintsadze.

With such statements, Ukraine is trying to increase its negotiating capabilities, according to Valery Seleznev, First Deputy Chairman of the State Duma Committee on Energy.

“Probably, from the point of view of the Ukrainian side, this looks like an absolutely logical step, like a kind of strengthening of the contractual position in negotiations on gas transit. But they should understand that these are not the methods that improve the dialogue. Russia has always been for constructiveness, ”the source said.

In turn, a senior fellow at the Center for European Studies of IMEMO RAS Vladimir Olenchenko noted that clashes between different political forces continue in Ukraine. In a conversation with RT, he identified three different groups: supporters of the development of relations with Russia, opponents of this, as well as the current government, which so far can not clearly determine this issue.

“I think that the contradictory statements that we observe reflect the confrontation in Ukraine between various political forces,” the expert noted.

“The center of power, which Zelensky most likely represents, cannot yet find a clear position and is constantly exposed to it from one side and then from the other. Therefore, we hear conflicting statements from Ukrainian officials, ”added Olenchenko.

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Transit issue

The talk show “Freedom of Speech,” aired by Orzhel, was dedicated to the problems of Ukrainian energy in general. In this regard, the discussion raised the issue of transit. The guests of the program - representatives of various political forces - agreed that it is important for the country to maintain gas transit from Russia to Europe because of the income that it brings to Kiev. However, Orzhel warned that gas prices for Ukrainians could rise to 12 thousand hryvnias ($ 500) per thousand cubic meters, if the contract is not concluded.

“A price of 12 thousand hryvnias is possible if there is no transit,” the minister said. At the moment, the average gas price in Ukraine is about 7 thousand hryvnias (about $ 293) per thousand cubic meters.

The current agreement on the transit of Russian gas through the Ukrainian gas transportation system expires on December 31, 2019. Despite the fact that only one month is left until its end, a new agreement has not yet been concluded, since the parties cannot agree on its terms.

One of the obstacles to the new contract is litigation between Naftogaz and Gazprom. Companies have disputes in international courts. At the moment, according to the decision of the Stockholm arbitration, the Russian side should pay about $ 3 billion. However, Gazprom points out the unfairness of this decision and disputes it.

Russia proposes to mutually abandon all claims to conclude an agreement. Both President Vladimir Putin and Gazprom spoke about this in an official letter sent to the Ukrainian side a few days ago.

Another difficulty lies in Ukraine’s desire to adopt European energy legislation. Regarding the gas sector, this means, in particular, unbundling. Until recently, Naftogaz and Ukrtransgaz dealt with all issues related to gas - production, storage, transportation and sale.

The requirement of unbundling is that these processes must be controlled by different companies. For this purpose, the company "Operator of the gas transmission system of Ukraine" was created, which will be engaged in servicing the GTS. Starting January 1, the assets of this company will be under the jurisdiction of PJSC “Gas Pipelines of Ukraine”. The management of MSU will be implemented by Naftogaz.

“The decision is made at a different level”

However, Russia doubts that Ukraine will manage to adopt European legislation before the end of the year. So, the Ukrainian government plans to complete the creation of an independent GTS operator only on December 26 - five days before the end of the current contract. In this regard, Moscow proposes to conclude a temporary contract for one year, but already taking into account European standards.

Naftogaz said that if necessary they are ready for an annual contract. However, in Kiev they believe that a long-term contract is needed. Gazprom’s proposal in the Ukrainian cabinet was called unacceptable.

“The conditions that we received last Monday from Gazprom regarding the refusal of all arbitrations and the signing of a contract for a year are unacceptable,” said Orgel earlier. “A long-term contract provides an opportunity to attract long-term cheap money for updating investments, for corresponding needs, for pumping gas.”

The requirements of the Ukrainian side are unfounded, said Vladimir Bruter, an expert at the International Institute for Humanitarian and Political Studies.

“Recently, contacts have intensified very much. Russia is showing every kind of flexibility in order to agree on something with Ukraine before December 9th. Here the big problem remains - that Ukraine requires some compensation not only in price, but also for those claims that it will not file in European courts. This version seems absolutely absurd to me, because Russia shouldn’t and shouldn’t somehow participate in all these ideas, ”the analyst said in a conversation with RT.

To resolve the existing contradictions, Russia and Ukraine repeatedly held negotiations and technical consultations. As a rule, they were held in a trilateral format - with the participation of the European Union. However, the last consultations in Vienna on November 28 were held without EU representatives.

The next meeting may take place next week, admitted Russian Energy Minister Alexander Novak. He called constructive negotiations in Vienna and noted that issues of a technical nature are now being worked out.

According to the director of the Energy Development Fund Sergey Pikin, judging by public statements, the parties have already come to a compromise on most issues, but the issue of mutual rejection of claims remains unresolved.

“If we talk about the essential terms of the contract, that is, the term of the contract, fixing the volumes and cost of the gas itself, then, judging by the mood of the parties, everything is going in the right direction. The only incomprehensible question remains regarding the nullification of mutual claims - what was originally expressed as the initial condition for the start of negotiations. But this decision is made at a different level. I think that just this can be discussed at the level of presidents of countries, ”he told RT.

Vladimir Putin and his Ukrainian counterpart, Vladimir Zelensky, are due to meet as part of a Norman meeting in Paris on December 9. Press Secretary of the President of the Russian Federation Dmitry Peskov admitted that they can discuss issues related to gas.

“If there remain problematic issues on which it was not possible to agree, then the presidents will be able to use the meeting in Paris, where one way or another they will have the opportunity to talk together in order to touch on gas issues there,” said Peskov.