Photo: Nikolay Gyngazov/Global Look Rgege next year minimum wage (the minimum wage) should be compared with the cost of living. The job has given Vladimir Putin. The state Duma has promised to enact as soon as possible. Thus, the minimum wage equal to the subsistence minimum for the first time, although it has declared in recent years. Will this help in the fight against poverty? Details…
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Go to a section…For whom do you support in the conflict between Saakashvili and Poroshenko?
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News of the HOUR:North Korea has rejected a new UN security Council sanctions
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Moscow and Beijing are one step away from signing gas soglashaetsya succeeded in securing China’s desired price for gastby easier variationsin wants to mix its gas with the European
May 21, 2014, 17:08
Text: Olga Samofalova
A proposal to radically change the system of Russian gas supplies to Europe, put forward to Kiev. Ukraine wants Europe to buy gas on the Eastern Ukrainian border, but not on the Western as it is now – that is, make purchases with the EU. What does this mean for Russia and why the EU under any circumstances will not accept such a “gift”, versed newspaper VIEW.
Ukraine proposes the EU to transfer the receiving point of Russian gas on the Russian-Ukrainian border. That being said Kiev would allow European companies to use free capacities of Ukrainian underground gas storages (UGS).
Kyiv also wants investors from the EU and the USA together with Ukraine modernized and exploited the Ukrainian gas transportation system (GTS), including underground storage facilities, Prime Minister of Ukraine Arseniy Yatsenyuk.
Yatsenyuk argues that Ukraine is a party to the European energy Charter and the Energy community. And also the fact that the change in the system of Russian gas supplies will prevent the “gas crisis”.
Ukraine receives gas on the Eastern border. Part of Ukraine buys gas for their own needs, the other part is the transit through its territory to the Western border where they buy European traders. Kiev wants Ukraine and Europe together to buy gas on the Eastern border with Russia.
In Western Ukraine there is an underground gas storage with a volume of more than 30 billion cubic meters, the reserves are replenished in the warm season and used in cold autumn and winter period – starting in October, for deliveries to Europe and to meet their own peak loads.
The proposed method of Ukraine would like to move away from direct settlements with Russia for the supplied gas. “In the case of the transfer of the purchased gas from Western Europeans on the Eastern border of Ukraine, Russia will be forced to put a single bill for the EU and Ukraine. Thus, Ukraine will pay for gas with Russia and the European Union,” says investment analyst stock company “InvestProfit” Sergey Korobkov.
With this idea of Ukraine only wins. First, it will seek to reduce gas prices to the average European levels of $ 400 per thousand cubic meters (price for Kiev – $ 485). Secondly, the cost of upgrading its gas transportation system, Ukraine will shift to the EU. And most importantly, what hopes and Yatsenyuk, Kiev will be able to receive Russian gas, even if you do not pay. Because Russia will be harder to translate Kiev on a prepaid off valve – it will be one and the gas to Ukraine for transit of gas to Europe. Europeans, in contrast to Ukraine to pay for gas.
If the right of Gazprom to introduce advance payment system at debt for gas will be spelled out also in a single contract with Ukraine and Europe (which is likely), then the EU will have to pay for Kiev. Therefore, the EU is a very bad deal: the whole headache of gas, and Ukraine will fall on his shoulders. In addition, Europe will actually take on all the risks of transporting gas through Ukraine, says the box.
The EU will get a partner who will not be able to guarantee the timely payment of its portion of the gas, but still quietly can select from their own European gas pipe and gas storages.
Kiev has turned to European companies with a simple offer to buy them gas money and pump it into Ukrainian underground storage facilities, and in the winter they would be able to use it. “It would seem that this scheme guarantees the reliability of passage of Russian gas transit in the winter. But the Europeans have refused. Why? Because they understand that Ukraine then just paid them to steal gas. European businesses have no illusions about doing business with Ukraine,” – says the newspaper VIEW CEO of national energy security Fund Konstantin Simonov.
Russian implementation of the proposals of Kiev, on the one hand, is beneficial. “Gazprom will remove the headache of settlements with “Naftogaz of Ukraine”, – said box. Now the EU (not Russia) will have any way to ensure the payment of gas to Ukraine, in order not to be left without Russian natural gas. He can give, for example, loans to pay for gas supplies, as at the time repeatedly doing Gazprombank and other Russian banks.
This removes all responsibility from Gazprom for gas supplies to Europe. Europe will no longer be able to accuse Russia of unreliable supplies because of Ukraine. However, in geopolitical terms, Russia loses a lot. It will reduce the Russian influence on Ukrainian and European energy markets, and the project “South stream” may be at risk.
However, implementation of the proposals of Kiev, in practice, is highly questionable. Because the consent of Russia alone is not enough. It should give ahead of the EU that is almost impossible to imagine.
“Tomorrow Kiev will begin to steal gas from the pipe – and who then EU will be able to make a claim? Ukraine is simply trying to present itself as a reliable transit country, but in Europe all understand perfectly. So I’m sure that European companies such “gifts” are not happy with this idea and sent back home Kiev”, – says Konstantin Simonov.
Now Europe is all the time covered by the contracts with Russia, which Gazprom guarantees gas supplies. She has repeatedly stated that the transit issues that arise from the Ukraine, it was not her problem, so the Europeans refuse to get involved. And it is technically true – as long as the receiving point of Russian gas destined for EU countries, is the Western Ukrainian border.
On Wednesday, European Commission President Jose Manuel Barroso sent to Russian President Vladimir Putin the letter in which once again put on Gazprom is responsible for gas supplies to Europe. “Ensuring supply of required quantities of gas under contracts for the supply of European companies remains the responsibility of Gazprom”, – said Barroso.
However, all of the “cries” and accusations of Gazprom come from European politicians, while the European business, in particular gas traders understand the difference between commercial partnership with Ukraine and Russia.
Russia this month switched Ukraine to a prepayment system for gas supplies due to unpaid debts. If Kiev does not pay, from June 3, gas supplies will be stopped, while maintaining transit flows. Barroso urged in a letter to Putin not to interrupt the supply of natural gas during the tripartite negotiations Russia, the EU and Ukraine. This will not happen if the parties fail to agree to 3 June. For the next week scheduled two round of gas talks between the two countries.
Oettinger said that it intends to offer in the negotiations on the price of Russian gas for Ukraine, located between the claims of the parties. Most likely, it is about 350-400 dollars per thousand cubic meters. Recall the contract with Gazprom price to Ukraine for gas is 485 dollars per thousand cubic meters, and Kiev requires a 55% discount and reduce the price to $ 268.
Russia has said it was willing to discuss the price, but only after payment of the Ukrainian debt in $ 2.2 billion (in early April). While at the beginning of may Kiev’s debt to Russia has grown to $ 3.5 billion.
I wonder what Simon sees in the offer Ukraine a double meaning. He believes that Kiev actually would not just postpone the purchase of gas on the Eastern border, and the purchase of Russian gas and to sell it in Europe. “That is, to contract with the European gas traders (Eni and others) should not be Gazprom and Naftogaz. Europe’s dependence on Ukraine in this case is huge, and most importantly, that all legal risks are transferred to the Europeans. All of our headache becomes a European,” – said Simonov.
This follows from the fact that Ukraine has in the past tried to push this idea. In 2003, there were negotiations on the establishment of a tripartite consortium (Russia, Ukraine and the EU) via the Ukrainian GTS. However, the project then fell apart, because Ukraine suddenly declared that a tripartite consortium means a revision of the contractual agreements with Gazprom and the transfer of Ukraine the right to sell Russian gas to Europe. At the trilateral consortium was buried.
“Although we have this idea of something profitable, but to sell gas to Naftogaz, for resale in Europe, we will not, under any circumstances,” – said Simonov. At least because in this case, Gazprom itself creates a new competitor in the European market. Moreover, such a competitor, which exports large volumes of gas if there is insufficient domestic production of gas for their needs.