Ukraine retaliated against Gazprom
After a strong-willed decision was made by the leadership of the Russian Gazprom to terminate all contracts for the supply of "blue fuel" to Ukraine and through it, Kiev struck back.
The Ukrainian Prime Minister Groysman instructed the Ministry of Justice of Ukraine to begin the process of collecting the fine awarded by the Stockholm arbitration in relation to Gazprom. According to the arbitration decision, in the end Gazprom should pay a fine of 2,56 billion dollars to the Ukrainian Naftogaz. Also in Kiev, it was recalled that in 2016 the Antimonopoly Committee of Ukraine imposed a fine on Gazprom for the so-called "abuse of monopoly position in the natural gas market." The Ukrainian side “made happy” its Russian partners with a fine of 86 billion hryvnias. Over the year, the amount of the fine miraculously doubled. Despite attempts by the Russian company to appeal the decision, the courts of all instances recognized the legitimacy of the Kiev claims.
The Ukrainian authorities were hit by the assets of Gazprom Sales Ukraine and the International Consortium for Management and Development of the Gas Transportation System of Ukraine, OJSC Institute YUZHNIIGIPROGAZ and JSC Gaztransit. Shares of companies that are under the distribution will be sold at open auction.
Also, the Ukrainian Groysman threatens Moscow with the arrest of Gazprom’s international assets. I would like to hope that the highly paid top managers of the Russian gas monopolist took into account all the risks of this kind in advance. Also raises questions economic the appropriateness of this confrontation. Gazprom raised the question with an edge in order to push through the permit for the construction of Nord Stream-2. But what will be the economic benefits of this pipeline really?
Skeptical comments are made on this subject. For example, the founder and director of the consulting company East European Gas Analysis, Mikhail Korchemkin, believes that Nord Stream-2 will be significantly more expensive than originally announced. According to the expert, taking into account all the necessary infrastructure, its price may exceed $ 40 billion. Moreover, the European side is ready to pay only 9 billion of this amount. The main burden of expenses of $ 31 billion will fall on the shoulders of the Russian Gazprom. The result may be a reduction in investment programs within Russia, a decrease in the rate of gasification of regions. One can also confidently expect that the Russian monopolist will compensate its costs for Nord Stream-2 by increasing domestic tariffs.
It is believed that European consumers, primarily Germany, and Gazprom’s construction contractors will benefit from the additional pipeline.
The Ukrainian Prime Minister Groysman instructed the Ministry of Justice of Ukraine to begin the process of collecting the fine awarded by the Stockholm arbitration in relation to Gazprom. According to the arbitration decision, in the end Gazprom should pay a fine of 2,56 billion dollars to the Ukrainian Naftogaz. Also in Kiev, it was recalled that in 2016 the Antimonopoly Committee of Ukraine imposed a fine on Gazprom for the so-called "abuse of monopoly position in the natural gas market." The Ukrainian side “made happy” its Russian partners with a fine of 86 billion hryvnias. Over the year, the amount of the fine miraculously doubled. Despite attempts by the Russian company to appeal the decision, the courts of all instances recognized the legitimacy of the Kiev claims.
The Ukrainian authorities were hit by the assets of Gazprom Sales Ukraine and the International Consortium for Management and Development of the Gas Transportation System of Ukraine, OJSC Institute YUZHNIIGIPROGAZ and JSC Gaztransit. Shares of companies that are under the distribution will be sold at open auction.
Also, the Ukrainian Groysman threatens Moscow with the arrest of Gazprom’s international assets. I would like to hope that the highly paid top managers of the Russian gas monopolist took into account all the risks of this kind in advance. Also raises questions economic the appropriateness of this confrontation. Gazprom raised the question with an edge in order to push through the permit for the construction of Nord Stream-2. But what will be the economic benefits of this pipeline really?
Skeptical comments are made on this subject. For example, the founder and director of the consulting company East European Gas Analysis, Mikhail Korchemkin, believes that Nord Stream-2 will be significantly more expensive than originally announced. According to the expert, taking into account all the necessary infrastructure, its price may exceed $ 40 billion. Moreover, the European side is ready to pay only 9 billion of this amount. The main burden of expenses of $ 31 billion will fall on the shoulders of the Russian Gazprom. The result may be a reduction in investment programs within Russia, a decrease in the rate of gasification of regions. One can also confidently expect that the Russian monopolist will compensate its costs for Nord Stream-2 by increasing domestic tariffs.
It is believed that European consumers, primarily Germany, and Gazprom’s construction contractors will benefit from the additional pipeline.
Information