The Ukrainian side has repeatedly addressed the Secretariat of the Energy Community with statements and letters, noting that the construction of the South Stream pipeline is in conflict with the national interests of Ukraine and the basic principles of the Energy Community itself, sources at the Ukrainian Energy and Coal Industry Ministry and the government told Interfax-Ukraine when commenting on the opposite statement by Director of the Energy Community Secretariat Janez Kopac.
“The information provided by the director of the Energy Community
Secretariat that Ukraine hasn’t supplied an official request regarding
the South Stream is at least bewildering,” a ministry source told
Interfax-Ukraine.
According to the source, the last such request was filed in late
November 2012. Kyiv had sent a similar official letter in February 2012
to Slavcho Neykov, who held the post before Kopac (Interfax-Ukraine has
got the copies of the letters), the source said.
Another source said that the Energy Community Treaty clearly states
that its main goal is to create and develop a common energy market of
the member countries.
“If the Ukrainian gas transportation system operates, why build
pipelines to bypass Ukraine then? Moreover, via the countries that are
not Energy Community members, unlike Ukraine,” the source said.
According to the source, no special statements from Ukraine are
needed to safeguard this basic principle of the Energy Community,
otherwise there is no reason for the secretariat of that organization to
exist.
“The basic principle of the [Energy Community] Treaty and the tasks
of the secretariat is a common energy market, rather than the
interpretation of EU legislation on energy. Otherwise the Energy
Community works as a one-way street with [its only function] to require
that member states comply with the directives and regulations. Why is
such an organization needed then?” the source said.
As reported, in late November 2012 the Ukrainian Energy and Coal
Ministry once again appealed to the Energy Community’s Secretariat with
the request to urgently initiate consultations to discuss the South
Stream project, which contradicts Ukraine’s national interests. The
ministry stressed that to plan large-scale modernization of Ukraine’s
gas transport system, the country should have long-term guarantees of
natural gas transit volumes via its territory.
“However, despite the fact that Ukraine has a well-functioning gas
transportation system, which provides continuous energy supplies to
Europe amid the absence of investment, individual member countries of
the Energy Community have got involved in the South Stream project,”
read the letter sent to the Energy Community.
Ukraine’s position was ignored by the Energy Community, and the
official ceremony of welding the first joint of the South Stream gas
pipeline took place on December 7, 2012. The capacity of the first line
of the pipeline is 15.75 billion cubic meters, while the total design
capacity is 63 billion cubic meters per year.
Meanwhile, with the launch of the first phase of the Nord Stream
bypassing gas pipeline and greater engagement of the Belarusian gas
pipelines controlled by Russia’s Gazprom, volumes of Russian gas transit
shipments through Ukraine have been declining in recent years,
aggravating the already difficult financial situation of NJSC Naftogaz
Ukrainy caused by unreasonably high prices of Russian natural gas sold
under gas contracts signed in 2009. In particular, in 2012 the volume of
transportation of gas through Ukraine to Europe and CIS countries
decreased by 19.1%, or about 20 billion cubic meters, to 84.26 billion
cubic meters.
The throughput capacity of Ukraine’s gas transportation system is 288
billion cubic meters at input and 178.5 billion cubic meters at output,
including 142.5 billion cubic meters to Europe and 3.5 billion cubic
meters to Moldova.
