Prepare the contract. Meeting of Ukraine and Russia on transit

Готовят контракт. Встреча Украины и РФ по транзиту

Ukraine and Russia resumed negotiations on gas transit

Tripartite negotiations on Russian gas transit through Ukraine took place in Berlin. They also participated representatives of the EU and Germany.

Negotiations on the transit of Russian gas through Ukrainian territory in 2020 took place on 17 July in Berlin. In the first over the last few years round of tripartite talks Ukraine, Russia and the EU had to define the scope of the discussion.

If Russian President Vladimir Putin links the transit of gas to end the disputes between Gazprom and Naftogaz in the Stockholm arbitration, Ukraine proposes to raise the volume of transit and reduce the cost. Корреспондент.net tells details.


Ukraine’s Position

After the collapse of the Soviet Union on Ukrainian territory were more than 90 percent of the export gas from Russia. After entering the gas pipeline Yamal-Europe through Belarus to Poland and the Blue stream to Turkey, the transit was reduced to 75 percent.

After the commissioning of Nord stream is about halfway. If Russia launches Nord stream-2 and Nord stream, the transit of gas through Ukraine will fall to 10-15 percent of total Russian exports.

Last week the commercial Director of Naftogaz Yuriy Vitrenko said that the Ukrainian side goes to Berlin “the main proposal is to apply the European rules regarding the transit of Russian gas through the territory of Ukraine”.

And with the Northern stream. Gazprom cannot do without Ukraine

Vitrenko said that the lawsuit, filed by the company on 6 July Gazprom in the Stockholm arbitration, provides requirements increase in rates for gas transit for the period 2018-2019.

In Berlin, according to him, the main topic of negotiations will be Russian gas transit after 2019.

“After 2019, we said and say that the transit rate would be even lower than it is now under contract. Therefore, we will not require a long-term rate increase,” – said Vitrenko.

This approach, according to him, will remove the discussions that the proposals of the Ukrainian side allegedly unfounded.

July 16, Naftogaz has published its proposals on tariffs for transit at the end of the current contract with Gazprom after 2019.

Ukraine is ready to lower the transit rate from the current level of 20 percent, to 2.17 dollars per one thousand cubic meters per 100 kilometers, if the volume of transit will grow to 141 billion cubic meters a year, i.e. to the level of 1998.

According to Naftogaz, it is possible, if Russia will cease to block the supply of gas from Central Asia and will cancel the export monopoly of Gazprom.

The head of Naftogaz Andrey Kobelev said that these rates are lower than the Northern flows.

However, Kommersant notes that the rate of Nord stream last year of $ 1.7. Nord stream-2, it will be around two dollars.

On the day of the meeting transcoronary Russia stopped the Nord stream. In Naftogaz said that the Ukrainian gas transport system more reliable.

“Russia again stopped the work of Nord stream due to scheduled maintenance. Right up to the end of July. And again the Ukrainian GTS (which never stopped the transit for repairs or maintenance) compensates to the European consumers the problems of Russians”, – stated in the message of Naftogaz of Ukraine in Facebook.

In Naftogaz also announced recogni profit in 2017 – UAH 39.4 billion.


The Position Of Russia

The summit with the American President Donald trump Putin said that Russia is ready to extend the transit contract with Ukraine, but with the stipulation resolve the dispute between Naftogaz and Gazprom in the Stockholm arbitration court.

Vitrenko said that the two dispute (in respect of the gas supply contract and the gas transit contract between Gazprom and Naftogaz) was already resolved in the Stockholm arbitration, and the only problem is that Gazprom is not fulfilling the decision of the arbitration does not supply gas to Ukraine at prices that are determined by arbitration, and does not pay 2.6 billion dollars compensation determined by arbitration.

He also said that Naftogaz is ready to settle and a new dispute concerning the revision of the transit fare, which Ukraine recently appealed to the Stockholm arbitration.

“If this dispute we will “regulate” in arbitration, it is practically impossible to finish by the end of 2019. In the best case – before the end of 2020. Ready Gazprom and Germany to stop the construction of Nord stream-2 before the end of the new arbitration?”, – he concluded.

It is worth noting that in arbitration, except the claim of Naftogaz, has the appeal of Gazprom on two previous decisions of the court. The probability of solving these disputes to the end of 2019 little.

According to the publication, Russia at the tripartite talks to solve tactical problem – confirms his promise not to reset the transit through Ukraine, the security of which Germany agreed to support Nord stream-2.

To Help Ukraine. Denmark blocks Nord stream-2

This also requires that Denmark has agreed to give permission to lay pipe in North potka through its territorial waters is now the only obstacle to the start of construction.


The results of the negotiations

The talks were attended ocsta Minister of foreign Affairs of Ukraine Pavlo Klimkin, Russian energy Minister Alexander Novak and EU Commissioner for energy Union Maros Sefcovic.

Sefcovic agreed that a new contract for the transit of Russian gas to Europe through Ukraine’s territory after 2019 must comply with European law.

“Future contract must fully comply with European law and other transit agreements. This will benefit the transparency… that Is what I think should be discussed at the expert level,” he said.

According to maroš Šefčovič, he invited Ukraine and Russia to hold expert meetings after the summer holidays. He added that there is a “very ambitious plan”.

Before the trilateral talks hosted a meeting of Minister of economy and energy in Germany Peter Altmaier with all parties.

He told reporters that today discussing how to make the volume of transit through Ukraine is “significant”, but specific figures should be the subject of later meetings.

“A lot of questions that need to be tackled at the technical and at the political level. Ukraine has never been easy to negotiate with Russia… There’s a lot of distrust and complaints, so it is important to talk with both sides and help both sides to talk to each other. This was the first meeting and the first talks. According to him, the European leaders are monitoring the progress of the negotiations,” the Minister added.

The German Minister noted that, in his opinion, this year is “a good opportunity to make progress on the merits.”

Nord stream-2 will be Ukrainian?

Altmaier said that the parties agreed to schedule further meetings on gas issues, noting that future meetings will be difficult.

Novak noted that the issues of volumes of transit of gas through Ukraine in 2020 will still be further explored by the experts.

At a press conference following the talks, the Commissioner said that the European Commission, Ukraine and Russia will begin this fall to prepare a new contract for gas transit to Europe for the period after 2019.

Novak noted that the sides “exchanged opinions” and more transit issues they intend to discuss in October, the next trilateral meeting.

Among the issues raised in the negotiations was the rate and volume of Russian gas transit through Ukraine, and the probability of peaceful settlement of disputes between Gazprom and Naftogaz, but this option has not received further development, said Novak.

He said that Russia hopes to increase gas supplies to Europe 10-15 percent in the next 5-10 years, and through this volume to provide transit of Russian gas through the territory of Ukraine.


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