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GAZPROM

January 14, 2009

Prime ministers of Bulgaria, Slovakia and Moldova see for themselves that Ukraine blocks gas transit to Europe

Gazprom’s Management Committee Chairman Alexey Miller had a working meeting today with Prime Minister of the Republic of Bulgaria Sergey Stanishev, Prime Minister of the Slovak Republic Robert Fico and Prime Minister of the Republic of Moldova Zinaida Grechanii at OAO Gazprom’s headquarters.

Participants of the meeting discussed critical situation which has developed due to the Ukrainian refusal to transport Russian gas to Europe.

In the framework of the meeting a visit to the Central Production and Dispatch Department (CPDD) was arranged, where Alexey Miller briefed Sergey Stanishev, Robert Fico and Zinaida Grechanii on the actual situation with gas transit via Ukraine using the dispatch center electronic map.

International observers and members of the International Monitoring Commission for the monitoring of gas transit via Ukraine took part in the meeting at the CPDD.

“As early as yesterday morning we began pumping gas towards the Balkan states which suffer from acute shortage of fuels. However Ukraine refused to let our gas in and still continues to block the input of our gas into the system. We demanded them to open shutdown valves, but got a negative reply without any distinct explanation from the Ukrainian party. As is seen on the main dispatch screen, the gas transmission system is open from our side, we maintain operational pressure in it and at any second it is ready to begin the natural gas supply to Europe via Sudja gas metering station. But the flow of gas in the Ukrainian direction amounts to zero – because the gas flow is blocked by a shutdown valve in the Ukrainian territory.

At our meeting today we have discussed possible steps to find a way out of the current crisis. Specifically, Prime Minister of Slovakia has suggested a gas swapping deal.

The deal provides that OAO Gazprom would supply natural gas for Ukrainian domestic needs in the amount of 20 million cubic meters per day, which is the same amount that is necessary for Slovakia, while Ukraine – considering its underground gas storage facilities are located in close vicinity to the border with Slovakia – would provide the same amount of gas to the consumers in  Slovakia.

OAO Gazprom agreed on such a swap. To proceed with this Ukraine should open the valve in its territory. So it is up to Ukraine.

We have also agreed to think how a similar pattern can be implemented for Moldova.

As to Bulgaria, unfortunately, swapping operations are impossible to arrange – no underground gas storage facilities are available in Ukraine for this route”, – said Alexey Miller.

Based on results of the meeting a concerted opinion of the parties was expressed to the effect that the current crisis of gas transit via Ukraine must be ended immediately and there are no fair reasons to delay resumption of the transit.

Sergey Stanishev, Robert Fico and Zinaida Grechanii have noted a necessity to diversify the routes for the Russian gas supply to Europe in order to avoid transit-associated risks. In this connection construction of direct gas transmission mains, such as the South Stream pipeline at the Black Sea bottom, becomes an issue of high priority.

 

 

 

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