Kiev does not see the possibility of a Russia-Ukraine gas crisis this winter, Valeriy Chaly, deputy director of the Razumkov Centre in Kiev and chairman of the Expert Council on the Ukraine-EU Committee, told New Europe on 23 November.
“It’s a very complicated picture, but I’m not predicting any problems in the winter period because Ukraine is now ready to guarantee payments for the Russian gas and transportation from Russia to Europe,” said Chaly, who is also a former deputy foreign minister of Ukraine. “Last year Ukraine even used its own resources to guarantee transportation in the winter period of the gas from Russia to the European Union. And it was a very significant example how Ukraine can contribute in the energy security of Europe,” he said. “So I don’t predict any other situations this winter.”
Ukraine has been trying to lower the price for imported Russian gas. Ukraine currently pays $430 per 1,000 cubic metres. The gas issue is very important for Ukraine because it’s part of the problems with the former Soviet republic’s budget and social spending which are affected by the growth of price of Russian gas, he said. Also the International Monetary Fund (IMF) has said that Kiev needs to increase the price of gas for its consumers in order for the Fund to prolong the standby loan to Ukraine, he added.
But Chaly noted that energy discussions between Kiev and Moscow go beyond the high prices Ukraine pays for Russian gas. The two sides discuss the gas market in Ukraine, he said, reminding that the current amount of gas supplies from Russia to Ukraine decreased dramatically for this year – down to 27bn cubic metres - and next year Ukraine’s government plans to take less gas than in 2012.
Chaly said Gazprom’s access to the Ukrainian gas market is narrowing. He said Kiev and Moscow are also discussing rules and mechanisms because Ukraine is part of the EU Energy Community and plans to implement European norms in the gas market.
Meanwhile, Ukraine has been working to tap other sources of energy in order to reduce its Russian imports. Earlier this month, Ukraine's state-owned natural gas company Naftogaz secured a deal with Germany's RWE to get gas. The gas will be delivered to Ukraine through Poland, by reversing one of the few lines that connect the two countries' transmission systems. “This agreement was achieved and all the facilities are ready,” Chaly said. “The amounts of gas are not enough to completely replace Russian gas. But it’s another source of transportation of gas to Ukraine.” He noted that Ukraine is also planning a liquefied natural gas (LNG) terminal and drill for shale gas. Moreover, the energy-hungry country is trying to increase energy efficiency. But he stressed that it will take time.
The Razumkov Centre Deputy Director stressed that Russia-Ukraine co-operation in the energy sphere will be very important. “Ukraine will be more independent in gas supplies but, at the same time, Ukraine shows that also it is ready to use all the facilities as a very important transportation country,” Chaly said. He expressed his disappointment that Russia will bypass Ukraine by constructing its Nord and South Stream pipelines. “But Ukraine is ready for that,” he quipped.
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