Gazprom's plans to build bypass gas pipelines with excess capacity means it is necessary to revise the gas giant's contract with Naftogaz Ukrainy for the transit of Russian natural gas through Ukraine since the current document does not contain guarantee transit volume, Ukrainian Energy and Coal Minister Yuriy Boiko told journalists in Kyiv on Monday.
“It is quite important for us to have guaranteed transit volume. This is important for any country and we aren’t the exception. This is significant when Russia is building gas pipelines with excess transit capacity,” he said.
It was earlier reported that an 11-year natural gas transit agreement was signed by Naftogaz Ukrainy in January 2009, which does not include clauses on a minimal transit volume and fines for not meeting this figure. At the same time, a contract signed then for natural gas purchase was developed on the “take or pay” principle even though Gazprom still has not presented Naftogaz Ukrainy with fines for reducing purchases. The risk of fines still exists and Kyiv’s main attempts at revising both contracts remain ineffective.
Following the launch of the first branch of the Nord Stream pipeline and Gazprom’s more effective use of Belarusian gas pipelines, transit of Russian gas through Ukraine continues to decline, which has worsened Naftogaz Ukrainy’s already difficult financial situation. For instance, total gas transport via Ukraine to Europe and CIS countries decreased by 19.2% year-on-year to 69.2 bcm in January-October 2012.
At the same time, Gazprom has started building the South Stream pipeline as an alternative to the Ukrainian system. This, along with other measures, might cause a further decrease in transit through Ukraine.
