Sluggish Russian-Ukrainian gas standoff has reached a new level. The Stockholm arbitration court sought with “Naftogaz” to “Gazprom” $2 billion for the set several years ago fuel. At the same time, according to Kiev, the victory was for him, as the court has written off Ukraine $56 billion, which Gazprom is required to take or pay conditions. According to experts, such statements are an attempt to delay payments for the debts. The court ordered the Square to annually purchase from Russia of 5 billion cubic meters of gas, and Kyiv needs to convince the West that he is in control.
The decision of the Stockholm arbitration, each party interprets in its favor. The President of Ukraine Petro Poroshenko called the verdict a “historic victory” and said that his country has “jumped the gas with the hook and got a real energy independence.” By win, the head of the Square implies the cancellation of Kiev with the requirements to $56 billion, which is trying to recover from “Naftogaz” to “Gazprom” in 2014.
The debt was formed under the take-or-pay conditions prescribed in the Russian-Ukrainian gas agreement, signed in 2000 years. This formula requires payment requested but not selected gas. When the buyer refuses to consume the amount, the supplier suffers financial losses. To exclude such a situation, the amount of compensation specified in the agreement.
This condition is obsolete. In the current economic circumstances, the demand for energy might change in a short time, and long-term commitments for the purchase of gas is not relevant. In addition, standing on the side of Russia, Stockholm would put doubt on the future of the Ukrainian economy. According to the Deputy head of “Gazprom” Alexander Medvedev, full satisfaction with the court of claims to “Naftogaz” would lead to the bankruptcy of the Square.
In this regard, the success of Kiev in confrontation with Moscow pales. Especially given that the Stockholm arbitration has obliged Ukraine to buy 5 billion cubic meters of Russian gas annually, and return our country $2 billion for previously delivered but not paid for the “blue fuel”. Penalties in respect of this decision has already been made for each day of delay, Kiev will have to add to the total amount of $600 thousand.
According to leading analyst of the national energy security Fund Igor Yushkov, Kiev is trying to replace the problem of proper energy balance information success. The statements of the Ukrainian officials are puzzling, as they are not only at variance with their previous position, but are contrary to present reality. So, the head of “Naftogaz” Yuriy Vitrenko has said that the decision of the Stockholm court of Kiev got the opportunity to buy Russian gas without paying for transportation. Now Ukraine reexporter “blue fuel” from Slovakia, Poland and Hungary.
However “Gazprom” never refused deliveries to Ukraine. Kiev itself broke off relations with Russia, preferring for political reasons to buy more expensive fuel in the EU. In this regard cast doubt on the words Poroshenko about “real energy independence”. Now the Square is not directly importing Russian raw materials, and Stockholm has ordered Kiev to resume gas extraction and strengthened Ukraine’s dependence on our fuel.
“The decision of the Stockholm arbitration is not talking about the end of the process. The Russian-Ukrainian gas conflict erupted with renewed force. Europe, where Kiev now buys fuel, tired of enduring the delayed payment. Recently, the Slovak court arrested the supply of “blue fuel” to Ukraine, fulfilling the requirements of the Italian IUGas, which owed “Naftogaz of Ukraine”, — said the head of analytical Department UK “BK-Savings” Sergey Suverov.
The expert recalled that in January the High court in London should make the final decision about another Russian-Ukrainian disputes in which our country is trying to recover from the Square more than $3 billion in repayment of Eurobonds. “Obviously, money is not Kiev. For 9 months of this year, the state debt of the country increased by 8.5% — to $77 billion, which is comparable to 83% of Ukraine’s GDP. In 2018 the country will have to prepare for a default, since this outcome now seems most probable,” — said the sovereign.