Original interview - UNIAN

Here please find key points:

Ukraine's sanctions against Russia could become very painful 

• Ukraine's sanctions against Russia could become very painful, if correctly introduced
• Sanctions in energy sector should be different for oil and gas
• Only 7,5% of Russian oil comes via Ukraine to three CE countries – Hungary, Slovakia and Czech Republic, which are supporters of our country, including gas reverse
• By stopping oil transit, Ukraine will rather punish own partners as Russia, with worthiest scenario for Slovakia, lacking access to maritime oil supply facilities
• Ukraine transited in 2013 53% of Russian gas, therefore, if interrupted, Gazprom will lose more than a half in incomes
• Adopted in first reading draft law does not foresee automatically sanctions, it legitimizes only their introduction
• The only case for sanctions in gas sphere should be direct military invasion of Russia in Ukraine
• Other scenarios bear risks for Ukraine, including Gazprom’s claims of an unsecured transit route and promotion of bypass gas pipelines
• Brussels could take seriously Gazprom’s propaganda and allow exceptions from third energy package for Nord and South streams
• Too early sanctions in energy sector could be used by Russia to invade by military means in Ukraine, explaining it by necessity to undertake all possible steps to secure gas flows to Europe
• In April 2014, Russia changed legislation and is allowed to use special guards for protection of energy infrastructure, including delivery, what in Ukraine’s case means very suitable excuse for invasion
• Ukraine’s authorities failed to explain Europeans the very intentions of sanctions, where the core idea is to create space for EU politicians and companies for changes in line with single gas market creation through transit contract with Ukrainian GTS operator, transfer of delivery point to eastern border and contract amendments with Gazprom
• Delivery point at Ukraine’s western border is a rudiment of Soviet era and European politicians should become driving force for companies to change this reality
• In Europe, however, there is a resistance to changes, event plant crash with EU citizens have not changed vacation plans and devil-may-care attitude
• Europeans it makes no matter deaths of hundreds in Ukraine, but they become extremely worried about possible reduction of comfort temperature in flats during winter time
• At the same time, it is easy to solve the issue by making statement in favour of proposed changes (European Commission) with subsequent proposals to European energy companies
• It will be step toward strengthening EU energy security by ensuring gas transit with direct EU-Ukraine contracts
• Ukraine made offer to create GTS operator with participation of EU and USA companies up to 49% of stakes.
• Adopted draft laws create necessary background for future cooperation and investments into Ukraine’s energy sector, as they fully corresponds with EU legislation and best practices.

 PS: The EU is very resistant, if asked to go quickly without comprehensive checks and consultations on national level. Therefore, first reaction on Ukraine’s proposals was … “let’s keep the current conditions”, even if it corresponds interests of EU.

Delaying of quick decisions in positive for Gazprom, as it allows preparing counterarguments and hindered incentives. According to deputy head of economic department at Institute for Energy and Finances Sergey Agibalov, price differences in Gazprom’s gas contracts with European are explained mostly in terms of transportation and distribution peculiarities. If gas supplies will go through a “single pipe” and delivery point, it will become much harder for Gazprom to explain different prices to its EU partners.

(Minprom materials).