Stanislav Belkovsky, the controversial Russian political scientist [who recently claimed President Putin was the richest man in Europe and that he would leave power completely after the March elections], in an article in 'RIA Novosti' considers Yulia Tymoshenko to be "Lukashenko in a skirt", but as a partner-negotiator for the Kremlin, she is more convenient than Viktor Yushchenko, or even Viktor Yanukovych.
Belkovsky says relations between Putin and Tymoshenko cannot be defined simply, but that he should not be considered an absolute enemy of the Ukrainian premier. "Remember that during September 2005, immediately after Tymoshenko's resignation from the post of prime minister, Putin twice met with her; but after this, contact between them was broken. The question now is will Tymoshenko be able to renew [their relationship] to the previous level of mutual loyalty and trust ," questions Belkovsky.
According to him there are arguments for and against this course of events. "The main argument for is the figure of Viktor Medvedchuk, head of former president Kuchma's presidential administration (and a close personal friend of Putin and [Dmitry] Medvedev), and who supports Tymoshenko and is one of her main unofficial representatives in Moscow. Arguments against - Putin considers Tymoshenko has not kept any of her promises given to him in September 2005 during their informal encounter on the anniversary of the-then secretary of the Security Council of Russia Igor Ivanov, and subsequently at their joint dinner in the residence of the President in Novo-Ogarevo, near Moscow ", explained the political scientist.
Belkovsky considers that gas will be the main theme of negotiations of the Ukrainian premier in Moscow [during her visit next week]. Tymoshenko has long expressed a wish to reorganize Ukraine's gas import schemes, but it's clear that the basics cannot be changed. In order to preserve the price of gas for Ukraine below the Gazprom price, it is necessary to mix expensive Russian gas with cheaper Central-Asian gas; and to make up this cocktail, a mediator [i.e. RosUkrEnergo] is necessary. [LEvko considers this to be baloney]
He does note that in the Kremlin there are people who would like to see the back of the indermediary companies, but there is a considerable lobby of supporters in favour of them. It is not possible to underestimate the fact that the executive director of "RosUkrEnergo", Konstantin Chuychenko is a close friend from student days at university of the future President of Russia Dmitry Medvedev, which makes it possible to confidently assume that Medvedev is rather a supporter of the present system of trade in gas, than an enemy, concludes Belkovsky.
At best Ukraine and Russia may agree on the replacement of one intermediary company with another; but major change in the way the Ukrainian/Russian gas business proceeds will not change. If it did, the price of gas would increase to $230 dollars per thousand cu.m. or more, says Belkovsky.
ps. According to 'insiders', Ukraine may demand transit tariffs for westbound Russian gas to be increased from $1.7 to $9.32 /1000 cu.m/100km.
Showing posts with label RosUkrEnergo. Show all posts
Showing posts with label RosUkrEnergo. Show all posts
Thursday, January 17, 2008
Tuesday, January 15, 2008
New ally for Yulka in battle to eliminate RUE
Tymoshenko's KabMin is to propose a seasoned politician, one of Ukraine's biggest industrialists, Vitaliy Hayduk, for the currently vacant position of vice PM resonsible for the Fuel-Energy complex. The proposal is no surprise. I have written a small biography on the man before.
Today's "Ekonomicheskiye Izvestiya" includes this story, parts of which I've translated below, entitled: "Tymoshenko will receive another deputy"
"Mr. Hayduk was vice-premier responsible for the fuel and energy complex [PEK] previously - in 2003, in the first government of Viktor Yanukovych. He also had experience as the head of fuel department during premier Anatoliy Kinakh's stint as PM (November 2001 - November 2002), and was first Deputy Minister of PEK in Victor Yushchenkos' government in 2000).
At the beginning of 1998 Hayduk was offered chairmanship of the newly-created National stock compay "Naftohaz Ukrainy", but he turned it down. As a result [the notorious] Ihor Bakay got the job.
In January 2006 Hayduk turned down the post of vice-premier of PEK, even though President Yushchenko stated in the interview on four Ukrainian television channels on 30th December, 2005, that he signed an edict appointing him. The document was never published. Hayduk says that he turned down the post after the conclusion of the January 4th 2006 agreement between the Ukraine and Russia "on regulating relations in the gas sphere", [during that winter's gas crisis], because of the introduction of RosUkrEnergo into the gas delivery scheme. RosUkrEnergo is controlled by Russia's "Gazprom", and Ukrainian businessman to Dmytro Firtash. "I do not see any possibility, under the given circumstances, of working at that post.." he said.
Hayduk and Tymoshenko are united in their dislike of RosUkrEnergo. They can combine efforts in government to remove it from the gas delivery scheme. On Saturday Tymoshenko confirmed her intentions to enter into direct relations with "Gazprom", and also to liquidate the internal gas market monopolist "UkrGaz-Energo", owned in equal shares by "RosUkrEnergo" and "Naftohaz Ukrainy", which supplies gas entering Ukraine from Russia.
Liquidation of "UkrGas-Energo" should positively influence the financial state of "Naftohaz". The minister of PEK, Yuriy Prodan, even before his recent appointment to this post, stated that at present, in essence, instead of "Naftohaz", it is "UkrGaz-Energo" [only] that operates in the [Ukrainian gas] market: the previous government created "specific additional conditions of profitability" for the latter.
"The profitability of UkrGaz-Energo is provided at the expense of "Naftohaz". We have substantially worsened the financial state of "Naftohaz", since it does not earn anything on the domestic market and cannot even obtain it's share of the activity of "UkrGaz-Energo", said Mr. Prodan.
Other factors which have lead to he [dreadful] financial situation which "Naftohaz" is now in will become known on 10th February, when the the inter-departmental verification commission investigating "Naftohaz's"financial-economic activity during 2006-2007 and headed first vice- premier Oleksandr Turchinov, completes its work. [Will criminal charges be brought against any of the company's bosses, LEvko wonders?]
Among Hayduk's priorities will be to ensure Caspian oil flows through the Odessa-Brody pipeline in the European direction. At the moment Russian-British TNK-BP Urals oil is transported in the reverse direction [for further transport by sea through the Bosphorous]. At the end of last week the chairmen of two Western Ukrainian refineries wrote a letter to the President, to the prime minister, and to the chairman of "Naftohaz" with a request to make a decision on the "averse functioning of the Odessa-Brody oil pipeline". [Hayduk has always supported transporation of Caspian oil northwestward though this pipeline.]
LEvko considers that for Tymoshenko removal of the gas intermediaries and dealing direct with the gas producing countries has become almost a crusade. But she may well have influential allies in Gazprom who would like to see the back of RosUkrEnergo too.
Today's "Ekonomicheskiye Izvestiya" includes this story, parts of which I've translated below, entitled: "Tymoshenko will receive another deputy"
"Mr. Hayduk was vice-premier responsible for the fuel and energy complex [PEK] previously - in 2003, in the first government of Viktor Yanukovych. He also had experience as the head of fuel department during premier Anatoliy Kinakh's stint as PM (November 2001 - November 2002), and was first Deputy Minister of PEK in Victor Yushchenkos' government in 2000).
At the beginning of 1998 Hayduk was offered chairmanship of the newly-created National stock compay "Naftohaz Ukrainy", but he turned it down. As a result [the notorious] Ihor Bakay got the job.
In January 2006 Hayduk turned down the post of vice-premier of PEK, even though President Yushchenko stated in the interview on four Ukrainian television channels on 30th December, 2005, that he signed an edict appointing him. The document was never published. Hayduk says that he turned down the post after the conclusion of the January 4th 2006 agreement between the Ukraine and Russia "on regulating relations in the gas sphere", [during that winter's gas crisis], because of the introduction of RosUkrEnergo into the gas delivery scheme. RosUkrEnergo is controlled by Russia's "Gazprom", and Ukrainian businessman to Dmytro Firtash. "I do not see any possibility, under the given circumstances, of working at that post.." he said.
Hayduk and Tymoshenko are united in their dislike of RosUkrEnergo. They can combine efforts in government to remove it from the gas delivery scheme. On Saturday Tymoshenko confirmed her intentions to enter into direct relations with "Gazprom", and also to liquidate the internal gas market monopolist "UkrGaz-Energo", owned in equal shares by "RosUkrEnergo" and "Naftohaz Ukrainy", which supplies gas entering Ukraine from Russia.
Liquidation of "UkrGas-Energo" should positively influence the financial state of "Naftohaz". The minister of PEK, Yuriy Prodan, even before his recent appointment to this post, stated that at present, in essence, instead of "Naftohaz", it is "UkrGaz-Energo" [only] that operates in the [Ukrainian gas] market: the previous government created "specific additional conditions of profitability" for the latter.
"The profitability of UkrGaz-Energo is provided at the expense of "Naftohaz". We have substantially worsened the financial state of "Naftohaz", since it does not earn anything on the domestic market and cannot even obtain it's share of the activity of "UkrGaz-Energo", said Mr. Prodan.
Other factors which have lead to he [dreadful] financial situation which "Naftohaz" is now in will become known on 10th February, when the the inter-departmental verification commission investigating "Naftohaz's"financial-economic activity during 2006-2007 and headed first vice- premier Oleksandr Turchinov, completes its work. [Will criminal charges be brought against any of the company's bosses, LEvko wonders?]
Among Hayduk's priorities will be to ensure Caspian oil flows through the Odessa-Brody pipeline in the European direction. At the moment Russian-British TNK-BP Urals oil is transported in the reverse direction [for further transport by sea through the Bosphorous]. At the end of last week the chairmen of two Western Ukrainian refineries wrote a letter to the President, to the prime minister, and to the chairman of "Naftohaz" with a request to make a decision on the "averse functioning of the Odessa-Brody oil pipeline". [Hayduk has always supported transporation of Caspian oil northwestward though this pipeline.]
LEvko considers that for Tymoshenko removal of the gas intermediaries and dealing direct with the gas producing countries has become almost a crusade. But she may well have influential allies in Gazprom who would like to see the back of RosUkrEnergo too.
Friday, January 11, 2008
Tymoshenko tackles gas
"Gazeta po Kievski' runs a story explaining how Tymoshenko intends to keep gas prices low for domestic consumers, while tackling the shady middlemen that supply gas to Ukraine.
Below are [loosely translated] portions:
Tymoshenko squeezes the Kremlin's arm - will cheap fuel for 'kommunalki' [municipal requirements] be obtained from the intermediary company "UkrGazEnerho's" reserves?
Today the first serious offensive by prime minister Yulia Tymoshenko directed against the gas mediators, connected directly with Moscow, took place. The national commission for the regulation of electric power (NKRE) declared, that on 8th January it has set the quotas for sale of gas for the monopolist "UkrGazEnerho" at 5 billion cu.m. per year. For the company, which had earlier sold 30-40 billion cu.m. p.a. to industrial enterprises - this will represent multimillion financial losses. Experts consider Tymoshenko can now provide cheap gas for a minimum of half a year to provide 'kommunalky' with cheap gas, obtained from the reserves "UkrGazEnerho", located in Ukrainian underground depositories.
Lustre of "UkrGazEnerho" [contrasts with] the poverty of "Naftohaz Ukrainy"
First a note about the mediator "UkrGazEnerho" itself. It was created as one of the conditions of the signing of agreement between Russia and Ukraine which put an end to the "gas war" of winter 2005/2006 when Russia closed off the gas valves.
"UkrGazEnerho" was founded by two companies - National Joint Stock Company "Naftohaz Ukrainy", and the [infamous] intermediary "RosUkrEnergo" (50% of which belongs to "Gazprom"). It was determined, that the company would concern itself [with the more lucrative] deliveries of gas to industrial users in the Ukraine. But how much gas it had the right to sell was not specified.
The ex-head of "Naftohaz Ukrainy" Aleksey Ivchenko, noted to 'Gazeta po Kievski', that in the spring of 2006, the NKRE issued a licence to "UkrGazEnerho" for the sale of 5 billion cu.m. of gas only. The remaining gas they had to sell to "Naftohaz Ukrainy".
However, elections took place soon after. Because of the [intractable] squabble between the "orange factions", Yanukovych's team came to power, and the Minstry of Fuel and Energy team changed. During August 2006 the same NKRE approved an increase of the gas quota that could be sold to "UkrGazEnerho" to 10 billion cu.m. This despite, as Ivchenko noted, in reality "UkrGazEnerho" was selling about 40 billion cu.m of gas to industrialists annually.
So we have the following picture: "Naftohaz Ukrainy" was selling expensive imported gas at reduced rates for municipal needs to provide hot water and heating for the population. And despite the fact that bills were being paid, money was disappearing to the intermediaries. As a result, debts of "Naftohaz Ukrainy" to "RosUkrEnergo" for the supplied Central-Asian gas were growing, as were the debts of the middleman to "Gazprom". The situation came to a head during the autumn last year when a "gas debt" of 2 billion dollars owed to Russia came to light. It was necessary to pay for this with our gas from Ukraine's underground storage facilities. During the summer "Naftohaz Ukrainy" had 8 billion cu.m. of gas stored. Now - this has 'gone', according to the new head of the National Stock comany Oleh Dubina.
[In contrast] the financial picture at "UkrGazEnerho" was excellent. Industrial consumers are forced to agree to buy gas at any declared price, considerably higher than the price for the population. And if bills were not paid in time, the principle "no payment - no gas", was applied. The company made multi-million profits, and as a result, the Russian "Gazprom" profited rather well too.
By giving approval to NKRE to "screw down "UkrGazEnerho", Tymoshenko solves several problems. First she provides 'recognition' to the businesses that supported her , and secondly there will be low tariffs for citizens' municipal services' gas consumption.
Firstly, the fundamantal portion of gas to industrialists will now be supplied by "Naftohaz Ukrainy", probably at prices lower than those proposed by "UkrGazEnerho". Furthermore, the industrialists will have an alternative, in contrast to the previous years.
Benefits from the innovations of lady Yu will be accrued e.g. by the Industrial Union of Donbass (ISD), headed by Vitaliy Hayduk. This is not for free - according to the information gained by "Gazeta po Kievski", they sponsored BYuT during last year's prematurely-called parliamentary elections. And Oleh Dubina, an associate of Hayduk, was appointed head of "Naftohaz Ukrainy".
Secondly, Tymoshenko has now, at the beginning of the year, started her campaign to displace intermediaries from gas deals between the Ukraine and Russia. This will ensure she will be better prepared for the complex talks with Russia on the price of gas for 2009.
Experts consider that lady Yu has acted correctly by tightening the screws on "UkrGazEnerho" gradually. But it does not deprive them of the license to sell gas, which could have caused an international scandal and heightened the desire of Russia to re-examine price for the current year. It is clear though that as a result of the quotas introduced, "Gazprom" will lose money, for which it will eventually present a bill to Tymoshenko.
Thirdly, Yulia Volodymyrivna has prepared a trap for "UkrGazEnerho" - the gas exists, but cannot be sold.
It's a simple scheme. There are approximately 30 bn cu.m. of gas in the Ukrainian underground depositories right now. If we believe the management of the National stock company, none of this belongs to Ukraine, i.e. the gas there is owned in essence by "RosUkrEnergo" and "UkrGazEnerho". Let's assume at least half - 15 billion cu.m. belongs to "UkrGazEnerho". But now they can sell only 5 billion cu.m. What can they now do with the remaining 10 billion?
An expert, Yelena Viter, notes export to Europe would be the most favoured version, but lady Yu can close off this path legislatively. Anyhow, transit pipes to the West are the property of the state.
The other option remains the sale of this gas to "Naftohaz Ukrainy" - at the low rates of 2006 as a fuel for municipal market. Everything is brilliant and simple. Not without reason has Yulia Voldymyrivna "froze" any increase in the price of the gas to the 'kommunal'shchikiv' for 2008, and also, therefore, tariffs to the population. Compensation from the budget will hardly cover any increase in the price of imported gas to 180 dollars per thousand cu.m.
While the authorities re-engineer their different gas schemes, which they themselves concocted, to us, to simple Ukrainians, only one matter is important - that the price of heating and hot water does not rise. What methods Tymoshenko acheives this by is of little interest."
-----------------------------------------------------------------------------------
The response from "UkrGasEnerho has been swift. An article from today's "Ekonomicheskiye Ivestia" entitled "NKRE has opened door to gas traders" provides details. Here are some portions:
The national commission for the regulation of electro-energy (NKRE) has decided to liquidate the monopoly of the joint enterprise "UkrGazEnerho" on the internal gas market by limiting the deliveries of fuel by the company at uncontrolled tariffs. Now instead of 32 billion cu.m of gas per year, UkrGazEnerho will only be able to supply its consumers with 5.04 billion cu. m.
Member of UkrGazEnerho supervisory council Andriy Halushchak considers that such limitations will lead to the destabilization of gas market, and that they are incorrect and could negatively affect the 'fulfillment of the gas balance'. At UkrGazEnerho they fear the decision of the NKRE means the terms of fulfillment of obligations on transit of Russian gas to the countries the European Union will be broken.
The NKRE justified the legality of their decision by the fact that UkrGazEnerho is a structure affiliated to "Naftohaz Ukrainy". According to Ukrainian legislation, the total share a business group possesses in the market for gas cannot exceed 35%. Taking into account the acting licences on the delivery of gas for other enterprises of "Naftohaz Ukrainy," the remaining volume of gas for UkrGazEnerho is 5,04 billion cu.m ".
The NKRE ruling implies that UkrGazEnerho will have spare gas, but the company will not will have the rights to deliver it to its consumers. According to the head of NKRE, Mr. Valeriy Kal'chenko, "The remaining volumes of gas UkrGazEnerho can be turned over to other suppliers at uncontrolled tariffs".
One expert considers the purpose of the actions of the NKRE is to create conditions that will stimulate revival of gas traders who will earn money on the resale of gas from the importer to end user. Because of this, its cost will grow.
LEvko says, as one door [or valve] closes, another one opens..
"All the rich people in Ukraine made their money on Russian Gas" - Ihor Bakai, 1998
Below are [loosely translated] portions:
Tymoshenko squeezes the Kremlin's arm - will cheap fuel for 'kommunalki' [municipal requirements] be obtained from the intermediary company "UkrGazEnerho's" reserves?
Today the first serious offensive by prime minister Yulia Tymoshenko directed against the gas mediators, connected directly with Moscow, took place. The national commission for the regulation of electric power (NKRE) declared, that on 8th January it has set the quotas for sale of gas for the monopolist "UkrGazEnerho" at 5 billion cu.m. per year. For the company, which had earlier sold 30-40 billion cu.m. p.a. to industrial enterprises - this will represent multimillion financial losses. Experts consider Tymoshenko can now provide cheap gas for a minimum of half a year to provide 'kommunalky' with cheap gas, obtained from the reserves "UkrGazEnerho", located in Ukrainian underground depositories.
Lustre of "UkrGazEnerho" [contrasts with] the poverty of "Naftohaz Ukrainy"
First a note about the mediator "UkrGazEnerho" itself. It was created as one of the conditions of the signing of agreement between Russia and Ukraine which put an end to the "gas war" of winter 2005/2006 when Russia closed off the gas valves.
"UkrGazEnerho" was founded by two companies - National Joint Stock Company "Naftohaz Ukrainy", and the [infamous] intermediary "RosUkrEnergo" (50% of which belongs to "Gazprom"). It was determined, that the company would concern itself [with the more lucrative] deliveries of gas to industrial users in the Ukraine. But how much gas it had the right to sell was not specified.
The ex-head of "Naftohaz Ukrainy" Aleksey Ivchenko, noted to 'Gazeta po Kievski', that in the spring of 2006, the NKRE issued a licence to "UkrGazEnerho" for the sale of 5 billion cu.m. of gas only. The remaining gas they had to sell to "Naftohaz Ukrainy".
However, elections took place soon after. Because of the [intractable] squabble between the "orange factions", Yanukovych's team came to power, and the Minstry of Fuel and Energy team changed. During August 2006 the same NKRE approved an increase of the gas quota that could be sold to "UkrGazEnerho" to 10 billion cu.m. This despite, as Ivchenko noted, in reality "UkrGazEnerho" was selling about 40 billion cu.m of gas to industrialists annually.
So we have the following picture: "Naftohaz Ukrainy" was selling expensive imported gas at reduced rates for municipal needs to provide hot water and heating for the population. And despite the fact that bills were being paid, money was disappearing to the intermediaries. As a result, debts of "Naftohaz Ukrainy" to "RosUkrEnergo" for the supplied Central-Asian gas were growing, as were the debts of the middleman to "Gazprom". The situation came to a head during the autumn last year when a "gas debt" of 2 billion dollars owed to Russia came to light. It was necessary to pay for this with our gas from Ukraine's underground storage facilities. During the summer "Naftohaz Ukrainy" had 8 billion cu.m. of gas stored. Now - this has 'gone', according to the new head of the National Stock comany Oleh Dubina.
[In contrast] the financial picture at "UkrGazEnerho" was excellent. Industrial consumers are forced to agree to buy gas at any declared price, considerably higher than the price for the population. And if bills were not paid in time, the principle "no payment - no gas", was applied. The company made multi-million profits, and as a result, the Russian "Gazprom" profited rather well too.
By giving approval to NKRE to "screw down "UkrGazEnerho", Tymoshenko solves several problems. First she provides 'recognition' to the businesses that supported her , and secondly there will be low tariffs for citizens' municipal services' gas consumption.
Firstly, the fundamantal portion of gas to industrialists will now be supplied by "Naftohaz Ukrainy", probably at prices lower than those proposed by "UkrGazEnerho". Furthermore, the industrialists will have an alternative, in contrast to the previous years.
Benefits from the innovations of lady Yu will be accrued e.g. by the Industrial Union of Donbass (ISD), headed by Vitaliy Hayduk. This is not for free - according to the information gained by "Gazeta po Kievski", they sponsored BYuT during last year's prematurely-called parliamentary elections. And Oleh Dubina, an associate of Hayduk, was appointed head of "Naftohaz Ukrainy".
Secondly, Tymoshenko has now, at the beginning of the year, started her campaign to displace intermediaries from gas deals between the Ukraine and Russia. This will ensure she will be better prepared for the complex talks with Russia on the price of gas for 2009.
Experts consider that lady Yu has acted correctly by tightening the screws on "UkrGazEnerho" gradually. But it does not deprive them of the license to sell gas, which could have caused an international scandal and heightened the desire of Russia to re-examine price for the current year. It is clear though that as a result of the quotas introduced, "Gazprom" will lose money, for which it will eventually present a bill to Tymoshenko.
Thirdly, Yulia Volodymyrivna has prepared a trap for "UkrGazEnerho" - the gas exists, but cannot be sold.
It's a simple scheme. There are approximately 30 bn cu.m. of gas in the Ukrainian underground depositories right now. If we believe the management of the National stock company, none of this belongs to Ukraine, i.e. the gas there is owned in essence by "RosUkrEnergo" and "UkrGazEnerho". Let's assume at least half - 15 billion cu.m. belongs to "UkrGazEnerho". But now they can sell only 5 billion cu.m. What can they now do with the remaining 10 billion?
An expert, Yelena Viter, notes export to Europe would be the most favoured version, but lady Yu can close off this path legislatively. Anyhow, transit pipes to the West are the property of the state.
The other option remains the sale of this gas to "Naftohaz Ukrainy" - at the low rates of 2006 as a fuel for municipal market. Everything is brilliant and simple. Not without reason has Yulia Voldymyrivna "froze" any increase in the price of the gas to the 'kommunal'shchikiv' for 2008, and also, therefore, tariffs to the population. Compensation from the budget will hardly cover any increase in the price of imported gas to 180 dollars per thousand cu.m.
While the authorities re-engineer their different gas schemes, which they themselves concocted, to us, to simple Ukrainians, only one matter is important - that the price of heating and hot water does not rise. What methods Tymoshenko acheives this by is of little interest."
-----------------------------------------------------------------------------------
The response from "UkrGasEnerho has been swift. An article from today's "Ekonomicheskiye Ivestia" entitled "NKRE has opened door to gas traders" provides details. Here are some portions:
The national commission for the regulation of electro-energy (NKRE) has decided to liquidate the monopoly of the joint enterprise "UkrGazEnerho" on the internal gas market by limiting the deliveries of fuel by the company at uncontrolled tariffs. Now instead of 32 billion cu.m of gas per year, UkrGazEnerho will only be able to supply its consumers with 5.04 billion cu. m.
Member of UkrGazEnerho supervisory council Andriy Halushchak considers that such limitations will lead to the destabilization of gas market, and that they are incorrect and could negatively affect the 'fulfillment of the gas balance'. At UkrGazEnerho they fear the decision of the NKRE means the terms of fulfillment of obligations on transit of Russian gas to the countries the European Union will be broken.
The NKRE justified the legality of their decision by the fact that UkrGazEnerho is a structure affiliated to "Naftohaz Ukrainy". According to Ukrainian legislation, the total share a business group possesses in the market for gas cannot exceed 35%. Taking into account the acting licences on the delivery of gas for other enterprises of "Naftohaz Ukrainy," the remaining volume of gas for UkrGazEnerho is 5,04 billion cu.m ".
The NKRE ruling implies that UkrGazEnerho will have spare gas, but the company will not will have the rights to deliver it to its consumers. According to the head of NKRE, Mr. Valeriy Kal'chenko, "The remaining volumes of gas UkrGazEnerho can be turned over to other suppliers at uncontrolled tariffs".
One expert considers the purpose of the actions of the NKRE is to create conditions that will stimulate revival of gas traders who will earn money on the resale of gas from the importer to end user. Because of this, its cost will grow.
LEvko says, as one door [or valve] closes, another one opens..
"All the rich people in Ukraine made their money on Russian Gas" - Ihor Bakai, 1998
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