Not an option

If Ukraine wants to get a discount for the Russian gas by creating a gas consortium to manage its gas transportation system, it has to remove obstacles on this way. This is what the Russian Ambassador to Ukraine Mikhail Zurabov told Ukrainian journalists yesterday.

We remind our readers that the fact that Ukraine has recently joined the European Energy Community hinders the creation of an international gas transportation consortium to manage the Ukrainian gas transportation system. However, none of the parties refused to play this card in their interests.

When answering the question of the Ukrainian media if Russia insists that Ukraine leaves the European Energy Community Zurabov said: “We will probably be able to find another scheme in which the question of the gas price for Ukraine might be resolved positively, taking into account Ukrainian interests.” Developing his statement, the Russian ambassador explained: “We got an idea to create a gas consortium whose participants would be Russia and Ukraine, or Russia, Ukraine and gas consumers in Europe, say, some German company.” According to Zurabov, the creation of such consortium allows solving a problem of limitations of the so-called second and third energy packages that prevent Gazprom from participating in any gas consortium without certain restructuring, which is unacceptable for Russia.

The Day asked the director of energy programs at Nomos Center Mykhailo HONCHAR to comment on this scenario:

“It is unlikely to find an EU company, not affiliated with Gazprom, that would agree to participate in this consortium. Though a formally European company might appear, de facto it will be a part of Gazprom empire. Some time ago they suggested a Czech gas trader Vemeks, created with participation of Gazprom’s subsidiary enterprises in Europe and almost completely controlled by Gazprom. In this case, in all probability, the Russian ambassador meant the variant of consortium where Gazprom would control both ends of the pipe (European and Ukrainian ones). However, then it will have nothing to do with the concept of the trilateral consortium of ‘Kuchma, Schroeder and Putin’ signed in 2002. This will be just glare to cover the bilateral joint enterprise of NAK and Gazprom in which Gazprom will dominate. The format of consortium Russians suggested in exchange for a discount for gas is just another Gazprom’s dream about taking over the Ukrainian gas transportation system in a European wrap. In this case they will first suggest giving them the gas transport system and then will think about giving a discount for gas.”