Russia-Ukraine gas talks collapse

by anamika.mis15 | December 31, 2008 at 09:14 pm
135 views | 1 Recommendation | 1 comment

Talks to resolve a gas supply row between Ukraine and Russia have failed, raising fears of possible energy shortages across Europe.

Gazprom said gas supplies to Ukraine would be cut on Thursday but that Russia would do its best to guarantee supplies to Europe.

Russian Prime Minister Vladimir Putin earlier said that Ukraine would block supplies to Europe if no deal was done.

Ukraine denies owing money to Gazprom, and says it has guaranteed gas transit.

The European Commission said Ukrainian Prime Minister Yulia Tymoshenko had given her assurances that there would be "no disruption of gas supplies to clients in the European Union".

In an announcement which came before the official deadline for the close of the talks, Gazprom said it would cut Ukraine's supply from 0700 GMT on Thursday.

Europe's gas pipeline network
Enlarge Map

"The debt to Gazprom for gas supplied earlier was not paid. Despite verbal statements from Kiev, Gazprom did not see any money in its account," said Gazprom's chief executive Alexei Miller in a live television briefing.

He criticised Ukraine's stance during the negotiations as "unconstructive", and said Gazprom had no legal reason to continue supplying gas to Ukraine.

Mr Miller said the contract to supply gas depended on the full settlement of £2bn in gas bills and late-payment fines levied by Gazprom.

He also suggested that Kiev was seeking to provoke a wider dispute, saying he was "forming the impression that there are political forces in Ukraine which are very eager to see a gas conflict between our two countries"

recommend This comment thread is now closed
0
Zanzi

Normal 0 false false false MicrosoftInternetExplorer4 st1\:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Обычная таблица"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;}

GAS WARS, Vol. 3. Empire attacks

 

Not for the first time Europe becomes the distinctive hostage of gas dispute, remembering the situation in January, 2006. Then very many people in EU have taken the side of Ukraine, at least, having agreed with argument according attempt of use of gas for political pressure of Moscow upon Kiev. For the present moment in EU a point of view over the attempt of the Russian Federation to revenge Ukraine for providing support to Georgia in August of the past year exists.

Now to the Ukrainian gas-transport system the gas intended for Europe arrives in extremely small volumes, or does not arrive at all. In accordance with the statements of both parties it is practically impossible to understand accurately who has made decision to block this gas - Russia or Ukraine. And the European point of view, on a large scale, in the current moment the main problem is not on of the reason of a fault of arriving gas, but the fact of its absence. Especially it concerns the countries of southeast and central Europe which remained in general without gas. They aspire whenever possible faster resolution of dispute between Ukraine and Russia.

 

The Ukrainian gas-transport system is the integral component of system of energy safety maintenance of EU.

The gas-transport system of Ukraine (GTS) includes 37,6 thousand km of gas pipelines of different function and productivity, 73 compressor stations with automatic compressor shops where it is established 703 units for gas transition by the general capacity of 5,4 thousand Мwt, 1607 gas-distributing stations, 13 underground storehouses of gas with the general spaciousness on active gas over 32,0 billion cubic m and objects of an infrastructure. On "input" GTS is capable to accept in 290 billion cubic m, and on "exit" to transfer 175 billion cubic m of natural gas, including 140 billion cubic m to the countries of the Western and Central Europe. Maintenance of consumers with natural gas is carried out by gas networks pressure to 1,2 Mpa which length makes close to 287 thousand in km. A necessary mode of gas supply in these networks provide about 51 thousand gas-regulating stations (GRS). Considering terms of operation of gas pipelines and their technical condition, for maintenance of reliable and effective functioning till 2015 it is planned to finish reconstruction of all compressor stations completely. Till 2030 it is provided modernization and technical re-equipment of gas-transport system with use of the most modern and effective technologies should be finished by then. It is planned to finish congestion GTS to design indicators and increase in its transit capacities at 30-35 billion cubic m of gas a year at the expense of building new stations.

Thus, the Ukrainian gas-transport system is an integral part of the gas market of Europe and always it will. Hence, the European Commission wishes to see Ukraine completely integrated into the power market of the European Union. It is a question of it and in the communiqué of European Commission for the Council of EU and for the European Parliament concerning “Eastern partnership” which confirms confidence of Europe of the important role of Ukraine in the process of maintenance of energy safety of Europe. Strengthening of support of full integration of the energy market of Ukraine to the EU’s market will be provided at the expense of the priorities allocated with European Commission from modernization of the Ukrainian gas-transport and petro-transport system, including improvement of system of monitoring behind oil and gas transportation. During the consultation process concerning cooperation deepening between Ukraine and the European Union which took place on December, 3-5 in Bruxelles, EU were confirmed with the intention on practical support of initiatives of Ukraine directed on increase of reliability and safety of deliveries and transit of gas and oil using the Ukrainian infrastructure.

 

It is impossible to deny the fact, that over a total period of export and transit deliveries of gas, mentioned period exceeds half-centuries, the Ukrainian gas-transport system has never given failure, and for the sake of the further increase of reliability of gas-transport system of Ukraine the program of its reconstruction and modernization which, in particular, provides replacement of units of swapping of gas, diagnostics and repair of a linear part of gas pipelines is realized; building of new pipelines, introduction of the European standards of operation, application of energy-efficient technologies, decrease in negative influence on environment.

On purpose in the future of preventing harm to energy safety to Europe it is necessary to create commission, which will carry out monitoring of receipt of gas in a gas pipeline to be convinced, whether gas or not which as Russia confirms, were misappropriated by Ukraine though it was impossible to assume, is delivered actually, considering a number of the obvious facts.

If both parties have agreed on such monitoring, it would help with the conflict decision. It would be possible to make active some positions of the European power Charter which Ukraine, unlike Russia, ratified.

In Bruxelles the Charter secretary has received from Ukraine guarantees of uninterrupted transit of gas to Europe. Now Ukraine declares, that it simply HAS nothing to transport to Europe. All control points which are responsible for the termination of supply of the Russian gas for the European consumers through territory of Ukraine, are situated in the territory of the Russian Federation. All responsibility for their work lays exclusively on Open Stock Company “Gazprom”. Therefore also independent monitoring is necessary.

Pricing on gas for Russia is the very delicate point, taking into consideration losses of the country against falling of the prices for energy carriers. Ukraine, for its part, also strongly suffered from crisis, and in general always had problems with payment of import of the gas which huge volumes consumes. At the same time birches of races of the prices for gas delivery (to 418 dollars for 1000 cubic metre) conducts only to blasting of economy of the consumer which in turn will negatively be displayed on bilateral economic relations of the next states which have powerful mutually advantageous trade barter.

Therefore, it is necessary to continue at EU support negotiations between the Russian Federation and Ukraine and as a variant, to develop the stage-by-stage plan about creation of the prices for the energy carriers considering all factors, including expenses for transit on territory of Ukraine.

This story was created over 3 months ago, the comment thread is now closed.

What is NowPublic?

NowPublic lets people work together to cover news events around the world.

Find out more

Crowd Power

Anonymous
First Flagged at 12:25 AM, Jan 2, 2009 by Anonymous (not verified)

Related Stories

Recommendations (1)

Most recently recommended by:
 

closeSign in to NowPublic

is reporting from