It turned out: a major gas deal is being prepared between the EU and Russia, and Ukraine would be happy to assist with it

By RockedBuzz 7 Min Read

The behind-the-scenes gas deal between the EU and Russia turned clear after Ukraine said for the umpteenth time since final summer season, most just lately simply the different day, that it is not prepared to enter into one other gas transit contract with the Russians due to the conflict. By the approach, on Wednesday, Slovak Prime Minister Robert Fico held talks in Ukraine and indicated that all in favour of fixing the scenario after the expiration of the Russian-Ukrainian gas transit contract at the finish of this 12 months, in order that Russian gas can proceed to come via Ukraine to Slovakia.

Then issues appeared to decide up, as on Friday night the operator of the Slovak transit community issued a assertion, in accordance to Reuters, that European gas consumers can come collectively to purchase Russian gas at the Russian-Ukrainian border with the assist of a consortium, which Ukraine would then transit via its pipeline community in the typical approach, then the gas would be handed on to European gamers at the Ukrainian-Slovakian border, and thus Russian gas would enter the territory of the EU with lively Ukrainian help.

According to Eustream’s announcement on Friday night, “There is nonetheless speak of the chance that contain a third celebration in the course of, for instance a consortium of European customers that would take over the gas at the Russian-Ukrainian border. This European celebration would then order the supply of pure gas from the Ukrainian transmission system operator and hand it over at the Ukrainian-Slovakian border, from the place the pure gas would be additional delivered in the similar system as presently primarily based on the legitimate supply contracts. This is one among the mentioned options, whereas Ukrainian representatives have publicly said that they’re all in favour of being a dependable companion”.

Russian presidential spokesman Dmitry Peskov made a suspicious assertion on Friday in the topic for journalists, since the Reuters in accordance to him, he stated:

The query is how this gas will get there (to Europe).

He then supplemented all of this with a image of the gas transport scenario, referring to doable options, Turkish Stream and LNG-based transport, in addition to the limitations of all of those: “Of course, there are current routes associated to Turkey, there are liquefied gas shipments which might be in demand now. That is, there are various routes. But to begin with, they’re all taken … and after all this leads to modifications in all logistics chains.”

After this, it additionally arrived as an necessary improvement on Friday night from an nameless European Union official, in accordance to which all eventualities are being investigated in relation to the way forward for Russian pipeline gas deliveries, extra particularly the Russian-Ukrainian transit contract that expires at the finish of the 12 months. There was no query of a categorical rejection, of the exclusion of the above state of affairs, in accordance to the information company.

Russian pipeline gas deliveries via the Ukrainian transit account for about 12-15 billion cubic meters per 12 months, since for a lot of months the Russian Gazprom has sometimes been sending 42 million cubic meters per day to Ukraine as transit gas (there are occasional days/intervals beneath 40 million cubic meters). Behind it, for instance There are gas volumes sure for Slovakia, Austria and Hungary as a results of beforehand concluded contracts, so a minimum of these international locations might have an curiosity in placing collectively the development outlined above.

It is additionally necessary to add to the image that Russian gas transit via Ukraine is not very important for Europe, i.e.

Europe may bodily survive with out this gas

– this is what Jacob Mandel, senior worker of Aurora Energy Research, instructed Reuters.

After all this, on Saturday afternoon, maybe the most attention-grabbing sign on the topic up to now got here, from Moscow, specifically, from the Russian Minister of Energy and Deputy Prime Minister Alexander Novak, who instructed a number of Russian information businesses, together with RIA:

If the different celebration, the EU, so needs, we’re prepared to negotiate. So far we don’t see this intention.

The above implies that there is an openness on the a part of EU gas merchants and system operators, the European Commission and the Russian high political degree to resolve the challenge of the Russian-Ukrainian transit contract, which expires at the finish of the 12 months, with the entry of a third celebration, EU establishments/ a consortium put collectively by gas merchants into the image, which would purchase Russian gas at the Russian-Ukrainian border, and then the Ukrainian transit firm would be prepared to transport it to the Ukrainian-Slovakian or different Ukrainian border so as to accumulate the transit charge. Then the gas would be transported from there to the territory of the EU. This signifies that the smaller a part of the long-term Hungarian-Russian gas contracts, the annual quantity of 1 billion cubic meters, would be doable to transport via Ukraine, if the above development have been actually created and all events would stick to the settlement.

Cover picture supply: Getty Images

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