Kiev is ready for a complete stop to the transit of Russian gas, this was stated in an interview with the Ukrainian edition of Liga.net by the head of the Ukrainian GTS Operator company, Sergey Makogon.
However, the Ukrainian side does not intend to stop the struggle against the Russian-German Nord Stream-2 project, counting on the support of its Western partners in this matter.
“It is already obvious that Gazprom will not be able to complete this project (Nord Stream - 2. - RT ) before 2021. We are ready for zero transit. And our optimization program is aimed at preparing for this scenario. But we do not stop fighting against the Nord Stream 2 project and we count on the support of both American and European partners, since Nord Stream 2 carries risks not only for Ukraine, but for the whole of Europe, increasing its dependence on gas supplies from the Russian Federation, ”said Makogon.
- Head of the Ukrainian GTS Operator company Sergey Makogon
- © mcfire76
According to him, the company’s management is now exploring the possibility of alternative ways to use the gas transmission system’s capacities - in particular, the supply of US regasified LNG from Poland to Eastern Europe. However, it is hardly possible to implement these plans so far, since the Polish side has not yet completed a section of the gas pipeline in the vicinity of the city of Tverzhen, says Makogon.
Battle for transit
Recall that at the end of last year, Moscow and Kiev were able to agree on the conditions for the transit of Russian gas through Ukraine to Europe. A new five-year contract was signed at the last moment, a few hours before the expiration of the previous contract.
The path to the agreement was not easy: throughout the entire previous period, Kiev constantly filed lawsuits against Gazprom with international courts. So, in early 2019, the Ukrainian Naftogaz appealed to the Stockholm Arbitration Court demanding that Russia compensate for the decrease in the cost of the Ukrainian gas transportation system due to the laying of gas pipelines bypassing the republic. Kiev then estimated its losses at about $ 12 billion. In addition, Naftogaz demanded to retroactively review the tariffs for the transit of Russian gas, and also accused Moscow of disrupting agreements on the volume of pumped fuel.
- RIA News
- © Alexander Demyanchuk
Kiev’s refusal of claims became one of the conditions of the Russian side when concluding a new contract. The agreement, signed on December 31, 2019, guarantees Ukraine the pumping of 225 billion cubic meters of gas through its territory for five years. At the same time, transit volumes will gradually decrease: if it is planned to pump 65 billion cubic meters this year. m, then starting from 2021 the annual volumes will be limited to 40 billion cubic meters. m
At the same time, under the terms of the previous contract, at least 110 billion cubic meters should have been pumped annually through the Ukrainian gas transportation system. m of gas. Although the real volume of transit sometimes deviated from this figure, it still remained at a fairly high level. Thanks to fuel supplies from Russia, the Ukrainian treasury was replenished annually by approximately $ 3 billion.
Reducing this income item does not suit Kiev, political analysts say. Therefore, the Ukrainian authorities are not abandoning attempts to impede the implementation of Russian gas transportation projects designed to diversify transit - Turkish Stream and Nord Stream 2.
Recall, “Turkish Stream” is an export gas pipeline to Turkey through the Black Sea. The Botas Petroleum Pipeline Corporation and Gazprom signed a memorandum of understanding on the construction of this pipeline in December 2014. Gas supplies via the Turkish Stream started in January 2020, with a design capacity of 31.5 billion cubic meters. m of gas per year.
The Nord Stream 2 project began in 2012, when the shareholders of the already existing Nord Stream decided on the economic feasibility of laying the second branch of the Trans-Baltic Railway. Project financing agreements were signed in 2017 between Nord Stream 2 AG and the European companies ENGIE, OMV, Royal Dutch Shell, Uniper and Wintershall. The total capacity of Nord Stream-2 will be 55 billion cubic meters. m of gas per year. As a result, together with Nord Stream, 110 billion cubic meters of gas will be delivered annually to Europe along the bottom of the Baltic Sea. m of gas.
At the same time, the project, even at the initial stage of implementation, became the object of attacks not only from Kiev, but also from Washington and Warsaw. According to the US authorities, he allegedly threatens the energy security of Europe, as it leads to the dependence of European countries on Russian supplies.
“Energy is always needed”
After repeated threats, Washington nevertheless managed to create obstacles to the implementation of Nord Stream 2. In December 2019, the Swiss company Allseas, which was laying the underwater elements of Nord Stream 2, stopped work. The company's management explained this step as a reluctance to suffer from US sanctions.
However, the Swiss decision only slowed down the construction of the gas pipeline, but did not stop it. As Jens Müller, an official representative of Nord Stream 2 AG, told reporters, at the time of December 2019, about 2.3 thousand km of a pipeline of approximately 2.46 thousand km had been laid.
Russia will lay the remaining section of the gas pipeline on its own. This was stated by Vladimir Putin during a press conference in January 2020.
- Angela Merkel and Vladimir Putin
- RIA News
- © Mikhail Klimentyev
Germany is also interested in the speedy launch of Nord Stream 2. As previously announced by German Chancellor Angela Merkel, the project needs to be completed.
According to experts, after the launch of Nord Stream 2, a number of new opportunities will open up for Germany, since all major gas pipelines will be closed on it.
“Germany will not only receive pipeline gas directly from Russia, but will also become a gas distribution hub for Europe and will be able to earn on transit and resale of gas,” Igor Yushkov, a professor at the Financial University under the Government of Russia, explained in an interview with RT.
A similar point of view is shared by the Deputy General Director for Gas Problems of the National Energy Security Fund Alexey Grivach.
“Crises come and go, but energy is always needed. “Nord Stream-2” is designed for decades of supplying Germany and Europe with Russian gas, which will be beneficial both for Russia as an exporter and for Europe, which is interested in these resources, ”Grivach explained.
“There were chances to save transit”
Commenting on the statement by the head of the Ukrainian company GTS Operator of Ukraine, Ukraine’s readiness for a complete suspension of transit, experts draw attention to the prematureness of such forecasts. As Igor Yushkov recalled, a transit contract between Kiev and Russia will be valid for another five years, during which Gazprom will pay the Ukrainian side for pumping fuel.
“The Ukrainian side makes such statements in order to preserve transit. Kiev wants to present the situation in such a way that Russia is ready to quit fulfilling its contractual obligations to Ukraine immediately after the launch of Nord Stream 2. This is not so, but with the help of such speculations, Kiev is trying to push Washington to strengthen sanctions against the project, ”Yushkov said.
He did not rule out such a scenario, in which Gazprom would extend the transit agreement after 2025, if it would be beneficial to the Russian side. At the same time, according to the expert, Kiev “did everything in order to lose revenue from transit.”
“If Ukraine had started a normal dialogue since the 2000s, it would probably not have been necessary to build the Nord Stream 2 and the Turkish Stream.” Kiev had every chance to preserve the transit volume of about 90-100 billion cubic meters. per year, but he did not use them. What can we talk about now, if earlier Ukrainian politicians declared their desire to blow up the gas transportation infrastructure, ”the expert noted.
This opinion is shared by Alexey Grivach. He noted that Ukraine itself created the prerequisites for Russia to intensify the construction of gas pipelines bypassing its territory.
“And now Ukrainian politicians are fighting against these projects. But if Kiev did not escalate tensions with its confrontational rhetoric, it could count not only on maintaining the level of transit, but also, possibly, on its growth. Instead, Ukraine has chosen the opposite strategy, ”concluded Grivach.