{"id":75828,"date":"2017-07-08T00:55:11","date_gmt":"2017-07-08T00:55:11","guid":{"rendered":"http:\/\/uacrisis.org\/?p=58360"},"modified":"2017-07-19T11:56:22","modified_gmt":"2017-07-19T08:56:22","slug":"58360-nord-stream-2-discussion","status":"publish","type":"post","link":"https:\/\/uacrisis.org\/en\/58360-nord-stream-2-discussion","title":{"rendered":"Ukraine\u2019s response to the threat of Nord Stream 2 should be reform in gas sector, reference to international agreements and emphasis that Ukraine has always been a reliable supplier –\u00a0 experts"},"content":{"rendered":"

WATCH IN ENGLISH<\/a><\/p>\n

To prevent the Nord Stream 2 project, Ukraine should speed up reform in the gas sector, increase extraction of its own gas. In the negotiations with the European partners, it is important to make reference to agreements to which Ukraine is part and stress that Ukraine has always been a reliable partner as a transit country, stated experts at a discussion \u201cRussia\u2019s Gas Wars: what must Ukraine and the EU do to deweaponize energy security\u201d. <\/em><\/p>\n

Ilya Zaslavskiy, the expert of Free Russia Foundation, presented his analytical report \u201cThe Kremlin\u2019s Gas Games in Europe: Implications for Policy Makers\u201d. The key conclusion is that Nord Stream\u00a02 is a politically motivated project that presents a major challenge to European law and EU principles and jeopardizes the security interests of the United States and its EU allies; while \u201cGazprom\u201d, despite statements that it pursues only business interests, is Kremlin\u2019s tool for geopolitical games. \u201cThe purpose of Nord Stream 2 and Turkish Stream projects is not only to build a pipeline bypassing Ukraine but also to create new gas hubs in Europe, in Germany, perhaps in Turkey [\u2026] and bypass Central and Eastern Europe as well. In this situation, Ukraine should emphasize that it undergoes transformations and becomes a more reliable partner, that it has always been a reliable partner and that Ukraine bottlenecked the pipeline neither in 2006, nor in 2009. Secondly, we must emphasize implications for collective security in Central and Eastern Europe. We must respond to propaganda related to all these projects to see what are real supply & demand … And all negotiations with \u201cGazprom\u201d must start from the point that we must anyway guarantee safe gas supply to Ukraine, and that we cannot change the existing infrastructure so quickly: we must clarify what implications will be for Ukraine, for CEE countries, for German consumers, and how this flow of costs moves\u201d, Zaslavskiy stressed.<\/p>\n

Mikhail Krutikhin, RusEnergy expert, says that Nord Stream 2 is very likely to be put in practice: it is an advantage for German partners of \u201cGazprom\u201d, because it will insure constant income from gas transportation, and other German companies – as an additional diversified source.<\/p>\n

According to experts, the first thing that Ukraine can do to prevent \u201cgreen light\u201d to the project is to become more attractive and transparent partner, implementing its commitments under the Third Energy Package and other agreements. These are unbundling, liberalization of the gas market according to European rules, presentation of the \u201croadmap\u201d until 2019 and transit fees issue, reminded Alan Riley, Professor of Law, Atlantic Council Expert. \u201cUkraine offering very competitive low transit fees which will allow Russian gas to cross Ukraine, a competitive rate which will make the Nord Stream 2 completely economically redundant \u2013 that is what you should do\u201d, he noted. Alan Riley emphasized that in fact Ukraine\u2019s gas storage and gas transit system and its own gas resources offer rather good opportunities for the country to participate in the development of the open European gas market. The only question is whether Ukraine will manage to seize these opportunities, or the slow pace of reforms will exhaust hope and good will of western partners to support Ukraine.<\/p>\n

There is a complete understanding of this state of things, says Natalia Boyko, Deputy Minister of Energy, Fuel and Coal industry of Ukraine. \u201cIn order to be able to oppose it [the Nord Stream 2] on the international level, we must do our \u2018homework\u2019. When we implement all our commitments under Third Energy Package, when we have clear pricing and clear understanding how all this works in Ukraine, then we will be able to negotiate with potential investors and offer them our market, then we will be able to protect our interests. [\u2026] Meanwhile, we must continue our dialogue with Brussels and the US, negotiate with Gazprom about what we are going to have in 2019 and use the available legal toolkit\u2026 Only when Ukraine will become transparent and understandable for potential investors, for EU and the US, then we can receive the support we hope for,\u201d she commented.<\/p>\n

\u201cI guess Ukraine should emphasize that the main threat to European energy security is not the state of Ukrainian transit system \u2013 it is old, but it functions perfectly \u2013 but the unpredictability of political decisions in Kremlin,\u201d noted Mikhail Krutikhin. Olena Pavlenko, president of the DiXi Group analytical center, pointed to the fact that discussions about a pipeline bypassing Ukraine always reemerge after Russia\u2019s statements about a possible stop of gas transmission via Ukraine.<\/p>\n

Mykhailo Honchar, President of the Center for Global Studies “Strategy XXI”, drew attention to the fact that according to Art. 274 of EU-Ukraine Association Agreement both Ukraine and Brussels must hold consultations on such issues. In the case of OPAL and Nord Stream 2 that did not happen. \u201cAs far as I\u2019m concerned, now there are preliminary agreements that there will be such consultations. And we must take a very decisive stand in our negotiations with Brussels and Berlin: there must be no \u2018green light\u2019 to Nord Stream 2, because it contradicts the interests not only of Ukraine and Poland but the whole EU, in the context of Energy Union; moreover, it would result in losses for Ukraine up to $2 billion. And if they will decide to implement the project together with Russia, then Ukraine must receive compensation for these losses,\u201d Honchar stressed.<\/p>\n

Natalia Boyko added that the agreement on the Energy Union is going to be amended soon and Ukraine should suggest including new tools into the agreement, such as commitment to hold consultations about transfrontier communications and use of strategic infrastructure.<\/p>\n

A \u201cpoint of no return\u201d for prospects of Nord Stream 2 and Ukraine\u2019s gas sector reform will be the shift of entry point to Ukraine\u2019s eastern border, says Olena Pavlenko. \u201cSince that time, Ukraine\u2019s transit system will be regarded as European transit system working according to European rules, which has to comply with European laws and can be held responsible for that. \u2026 There is still a very difficult way to go \u2013 there will be many attempts to prevent the shift of entry point to the eastern border. We have to do this work in close cooperation with European partners because it requires negotiations with European companies,\u201d Pavlenko said.<\/p>\n","protected":false},"excerpt":{"rendered":"

WATCH IN ENGLISH To prevent the Nord Stream 2 project, Ukraine should speed up reform in the gas sector, increase extraction of its own gas. In the negotiations with the European partners, it is important to make reference to agreements to which Ukraine is part and stress that Ukraine has always been a reliable partner […] More<\/a><\/p>\n","protected":false},"author":17,"featured_media":75829,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":[],"categories":[705],"tags":[3568,2654,1297,1963,32926,3566,3562,3565,3567,3564,9209,3563],"section":[648],"form":[31956],"yoast_head":"\nUkraine\u2019s response to the threat of Nord Stream 2 should be reform in gas sector, reference to international agreements and emphasis that Ukraine has always been a reliable supplier -\u00a0 experts | UACRISIS.ORG<\/title>\n<meta name=\"description\" content=\"https:\/\/www.youtube.com\/edit?o=U&video_id=o69SxWSqAPs WATCH IN ENGLISH To prevent the Nord Stream 2 project, Ukraine should speed up reform in the gas | Uacrisis.org\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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