Ukraine disconnects Europe

NAK Naftogaz of Ukraine reports a decrease in gas transit through the republic.

Ukraine went on the outbreak of a gas war with Gazprom. Naftogaz Ukrainy reported that it would reduce the transit of Russian gas through Ukraine, destined for European consumers. This action looks strange, because Tymoshenko said that European consumers will not suffer from a decrease in gas supplies to Ukraine. Gazprom may completely stop gas transit through Ukraine.

Gazprom spokesman Sergei Kupriyanov said the concern received a telephone message from Naftogaz Ukrainy, which states that gas transit through Ukraine to European consumers will decline.

“Ukraine is a reliable partner, and we are not in the least violating our obligations to export natural gas to European countries.” Gazprom’s daily deliveries will be reduced by 30 million cubic meters, RosUkrEnergo’s supply will decrease by the same amount. Thus, supplies will be reduced by 60 million cubic meters per day. “That is, this is the volume that Gazprom will deliver to the Ukrainian border, but these volumes will not reach European consumers,” Kupriyanov said, adding that independent observers are still not allowed at gas measuring stations in Ukraine.

386 million cubic meters of gas goes to Europe through Ukraine, of which 30 million cubic meters are supplied by RosUkrEnergo, the rest is Gazprom. According to a representative of the European Commission, Naftogaz of Ukraine did not warn about a reduction in transit. In addition, so far there have been no complaints from gas consumers in Europe. “So far, we have not received any complaints from EU member states about a decrease in Russian gas supplies.”

Naftogaz fulfilled the threat voiced on Tuesday. Then the company warned that due to a reduction in gas supplies to Ukraine, it could go to reduce the volume of fuel transit to Europe.

Gazprom reduced gas supply to Ukraine by 25%, but did not wait for any active action from Kiev. Gazprom’s claims for debt settlement and signing of new contracts remained unsatisfied. Then on Tuesday the company brought the reduction to 50%, leaving Ukraine only half of the volume of imported gas, thus putting the republic in a difficult position, especially industry. Now Gazprom supplies 69.3 million cubic meters of gas per day to the republic.

Viktor Yushchenko sent Yulia Tymoshenko a letter in which he demanded to resume negotiations with Russia. In turn, the head of the Ukrainian government said that Ukraine has the necessary reserves and resources to ensure the functioning of the national economy and the social sphere under gas pressure.

“Ukraine is provided with natural gas. Ukraine has all the necessary resources and reserves. We have well-functioning gas storages, and no matter how today they raise a wave of provocations around natural gas, Ukraine will continuously receive gas, heat and hot water. ”

She hastened to declare that the republic is a reliable partner of Europe. “Ukraine is a reliable partner, and we are not in the least violating our obligations to export natural gas to European countries. This is very important, this is the prestige of Ukraine, this is the stability of our partners to whom we supply gas through the Ukrainian gas transportation system, ”said the Ukrainian Prime Minister.

Naftogaz said that since December 2007 Gazprom has not been paying for gas transit to Europe. However, Gazprom immediately countered this attack, saying that it was ready to pay for gas transit, but could not do it for the reason that Naftogaz simply did not bill him for this service.

Sergey Kupriyanov added that the concern paid in full for the transit of gas to Europe through Ukraine. “Despite the fact that Naftogaz of Ukraine does not knowingly invoice and does not sign acts on gas transit in accordance with the current contract, Gazprom paid for the transit services in full,” he told reporters.

“The situation that now exists with the supply of Russian gas through Ukraine to Europe should not, in principle, exist,” says Dmitry Lyutyagin, an analyst with Veles Capital investment company. “But, to put it directly, theft is due to the gas distribution system operating in Ukraine.”

If earlier RosUkrEnergo was engaged in filling the domestic Ukrainian market, and Naftogaz – in the export of gas that came from Russia, now both of these functions are assigned to the second company. This causes a conflict of interest.

Ukraine makes up for gas shortages at the expense of European consumers, that is, we are back to the situation that Gazprom had previously struggled with. On the sidelines, decisions are made that justify the interests of the Tymoshenko group.”

According to the analyst, reducing transit, Ukraine is restoring its internal energy balance. Accordingly, Europe will pay only the volume of gas that it will receive, and Ukraine does not pay anything for the selected export gas.

Europe will insist that supplies resume for it, and sign the documents retroactively. “In turn, Gazprom may completely stop gas transit through Ukraine and increase flows through other channels. This will force Ukraine to settle the conflict within 24 days and pay, ”said Dmitry Lyutyagin.

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