Ukraine stands to lose $2 bln from Nord-stream II


November 9th, 2015 –
translated for Fort Russ by Soviet Bear –

Ukraine will annually lose
$ 2 billion because of the construction of the “Nord stream-2” pipeline,
said Deputy assistant Secretary of state for energy diplomacy Robin Dunnigan.

“You have to
wonder why you’re helping Ukraine with one and strangling it with the other,”
– quoted in TASS, by the statement of the representative of the U.S. state Department
in her appeal to the representatives of the countries of Europe.

In her view, after the
introduction of the “Nord stream-2 into operation Russia can stop gas
exports through Ukraine. “Complete cessation of Russian gas transit via Ukraine
will deprive it of its annual revenues in the amount of 2.2 billion
dollars,” said Robin Dunnigan. She expressed her concern that the
construction of this pipeline, will increase the EU’s dependence on energy
supplies from Russia.

“In essence,
“Nord stream-2″ is not only a threat to the viability of the Ukraine
and its resources, but also creates a risk for the diversification of fuel
sources for Europe, especially Southeast Europe,” she said. On September
10 the Prime Minister of Ukraine Arseniy Yatsenyuk said that the construction
of the second branch of “Nord stream” will completely disrupt Kiev’s
ability to supply gas to the European Union and will lead to the loss of 2
billion dollars annual income from transit. 

He later called on the European
Commission to prevent the construction of the pipeline.

Analysts have called
these statements by Ukrainian officials hypocritical, because Kiev forced
Russia to build pipelines bypassing Ukraine.

Meanwhile, Vzglyad
looked in detail why the statements of the Ukrainian Prime Minister about the
losses and the insolvency of the “North stream” is not true. In
particular, the magnitude of losses in 2 billion dollars a year is exaggerated,
as well as the loss of transit in 140 billion cubic meters of gas. In Soviet
times, the Ukrainian GTS was really designed for 140 billion cubic meters of
gas per year capacity. However, last year the Ukrainian pipelines to Europe
delivered only 60 billion cubic meters. The income of “Naftogaz of
Ukraine” in 2014 from the transit of Russian gas to EU countries amounted
to $ 17,424 billion hryvnas. 

This is 795 million dollars at current exchange
rate. These annual revenues of Ukraine will be lost, if it ceases transit
completely. However, this happens not only because of the second Nord stream,
but also because of two strings of “Turkish stream”.

In June this year a
Memorandum was signed about the project of “Nord
stream – 2”. It involves the construction of two offshore strings with a
total capacity of 55 billion cubic meters of gas per year from Russia to
Germany under the Baltic Sea, in addition to the existing two strings.

The Minister of
foreign Affairs of Hungary Peter Siyyarto called the position of the EC on gas
pipelines from Russia an example of double standards, recalling the unrealized “South

On September 4, the
Russian company Gazprom signed the shareholder agreement on the gas pipeline
“Nord stream – 2”, which provides for an increase in the supply of
natural gas to the EU. Signatures under the document were put by the CEO of
Gazprom Alexey Miller, the CEO of BASF Kurt Bock, Board member of E. ON Klaus
Schafer, Deputy Director of ENGIE Pierre Shreir, the CEO of OMV AG, Dr. Rainer
Seele, the CEO of Royal Dutch Shell Ben van Bearden.

The Vzglyad newspaper
noted, the composition of participants proves that this project is necessary to
Europe, and looked in detail, why this project is “less political”
than the “South stream”.

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