Sunday, April 2, 2023
 
 

EU wants progress in Russia-Ukraine gas talks

The EU will host a fresh round of Trilateral Gas Talks between Russia and Ukraine on 19 September in Brussels

- Advertisement -

The European Union will host a fresh round of Trilateral Gas Talks between Russia and Ukraine on 19 September in Brussels with European Commission Vice President Maroš Šefčovič stressing that a solution needs to be found as it is important for the future gas trading operations of both countries.

“Pleased to announce that I will host the next round of Trilateral Gas Talks on 19 September. I am convinced that progress would send a strong positive signal to market as well as consumers ahead of the winter season,” Šefčovič wrote in a tweet.

A European Commission spokeswoman told New Europe on 13 September that the expectations for the Trilateral Gas Talks “are to follow-up on the discussion that took place in February.”

On 9 September, Šefčovič met Ukraine’s Energy Minister Alexey Orzhel to discuss the upcoming talks and the progress of much-needed energy sector reforms in Ukraine. Šefčovič and Russia’s Energy Minister Alexander Novak had agreed to hold trilateral talks this month during a telephone call on 6 September but the precise date was only announced after consultations with the Ukrainian side.

The contract for Russian gas transit across Ukraine expires on 31 December and the European Union wants to find a solution to avoid natural gas cutoffs.

Katja Yafimava, a senior research fellow at the Oxford Institute for Energy Studies, told New Europe on 13 September she does not expect a breakthrough at the upcoming round of negotiations.

“I think it will be more about getting to know each other as the Ukrainian delegation will be different compared to the January 2019 round and will want to express their positions,” Yafimava said in reference to the new presidential administration of actor-turned-politician Volodymyr Zelensky, who defeated his incumbent rival Petro Poroshenko in a landslide electoral victory in April. Yafimava added that if any breakthrough were to be made it would be closer to the end of the year.

The Oxford energy expert believes that Russia’s gas monopoly Gazprom would want to book capacity on an annual basis whereas Ukraine’ National Joint Stock Company Naftogaz and the European Commission want it to conclude a 10-year contract.

Yafimava explained that Gazprom is not obliged under EU law – which Ukraine has committed to incorporate and implement – to book on 10-year basis, but could agree if certain concessions are made by Kyiv when it comes to direct purchases of Russian gas and/or arbitrations settlement and the European Commission’s commitment not to raise obstacles to the Nord Stream/OPAL and Nord Stream-2 pipelines.

“I think that, at best, Gazprom could hope to have one string of Turkish Stream and one string of Nord Stream-2 if Denmark gives an operational permit by January 2020, which means it would still be short of export capacity without Ukraine to continue to export to Europe at the 2019 level,” Yafimava said while adding that the recent OPAL judgment makes concluding the deal more urgent, but is likely to reduce Gazprom’s goodwill in the negotiations.

Meanwhile, many European countries, and Ukraine have injected large amounts of gas into Underground Gas Storage (UGS) facilities ahead of winter. Gazprom CEO Alexey Miller told a briefing with Russian President Vladimir Putin on 9 September the question of the transit contract is essential, and yet the top-priority question is whether Ukraine will buy Russian gas under a direct contract.

The new Ukrainian prime minister, Oleksiy Honcharuk, said in televised remarks, cited by Reuters on 11 September that the negotiations with Russia would be complex, but that Naftogaz has stored 19 billion cubic metres of gas to hold the country over through the winter.

“Ukraine had stored enough gas to minimise its vulnerability “to any attempts to put pressure on us during the negotiations. We feel confident,” Honcharuk said.

follow on twitter @energyinsider

- Advertisement -

Subscribe to our newsletter

Co-founder / Director of Energy & Climate Policy and Security at NE Global Media

Latest

When it comes to defense, the politicians must listen to those who know best – the generals

The halls of power are walked by people who know little, care even less and yet have the right to supersede and ignore the advice of those who know better.

Silicon Valley Bank financial contagion contained – for now

The world’s top policymakers and international financial leaders acted effectively in the days following the collapse of California’s Silicon Valley Bank. They appear to have dealt positively with the risk of wider global financial contagion.

EU plan to centralize gas purchases near impossible to implement

The global gas supply market will be much tighter this year than it was in 2022. The need for the EU to buy more gas, especially more liquified natural gas, from elsewhere will be greater.

Don't miss

When it comes to defense, the politicians must listen to those who know best – the generals

The halls of power are walked by people who know little, care even less and yet have the right to supersede and ignore the advice of those who know better.

Silicon Valley Bank financial contagion contained – for now

The world’s top policymakers and international financial leaders acted effectively in the days following the collapse of California’s Silicon Valley Bank. They appear to have dealt positively with the risk of wider global financial contagion.

EU plan to centralize gas purchases near impossible to implement

The global gas supply market will be much tighter this year than it was in 2022. The need for the EU to buy more gas, especially more liquified natural gas, from elsewhere will be greater.

Africa’s porous borders promote transnational crimes rather than deeper integration

For positive continental regimes to succeed, there must be both conscious and concerted efforts, as well as political will, from all states to help eliminate transnational crimes while fostering integration across the whole of Africa through trade.

When it comes to defense, the politicians must listen to those who know best – the generals

The halls of power are walked by people who know little, care even less and yet have the right to supersede and ignore the advice of those who know better.

EU plan to centralize gas purchases near impossible to implement

The global gas supply market will be much tighter this year than it was in 2022. The need for the EU to buy more gas, especially more liquified natural gas, from elsewhere will be greater.

Kazakhstan’s new parliament could usher in green energy, rare earth investments

Kazakhstan held internationally monitored elections for the Mazhilis, the lower chamber of the Kazakh Parliament, on March 19, following major constitutional reforms, which most...

Energy supply diversification out of Russia’s orbit is a top priority for Bulgaria

Bulgaria intends to diversify its energy resources, including supplying the country’s main refinery in Burgas - the largest in the Balkans - with non-Russian...

Georgia has shown the world that a Kremlin project can be defeated

In early March, the world’s attention was on Georgia. We saw massive protests fueled by anger, concerns and fear, and eventually, we witnessed a...

Putin’s New START withdrawal has broad implications

Vladimir Putin continues to persuade Russians that the West provoked his imperialist war of aggression against Ukraine. His announcement that he would no longer...

Energy-strapped Germany sets ambitious 30 GW offshore wind target by 2030

Germany, which has been struggling to fill its massive energy gap following Russia’s invasion of Ukraine and reduction of natural gas deliveries, is planning...

Providing Ukraine with advanced Western fighters is a logical step towards battlefield success

While Ukraine may have weathered the storm of Russia’s initial onslaught and retaliated with a force and determination largely thought to have been beyond...