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13 January 2009

Highlights from Gazprom Deputy CEO Alexander Medvedev's remarks on the recent developments regarding the Ukraine-Russia gas situation:

  • As agreed, Gazprom started gas transit from Russia to European customers this morning.

  • But the gas could not enter Ukraine since the Ukrainian side kept the pipeline closed.

  • So, Ukraine is blocking all Gazprom’s actions to resume the transit of natural gas to Europe through Ukraine.

  • Ukraine has informed Gazprom it has taken out the gas intended for Europe from the pipeline system to use it for the local consumption.

  • Ukraine informed Gazprom that they switched on autonomous regime exclusively for the local consumption of Ukraine. Already on January 1, Ukraine has switched their gas system exclusively to the local consumption.  

  • In this situation, Gazprom has no physical way to supply gas to European consumers.

  • Ukraine’s actions are outside the agreement with the EU, and the whole responsibility for the blockade of the gas deliveries to Europe fully lies on Ukraine.

  • Ukraine did not allow international and Russian monitors to come to the underground storage locations nor to the dispatching centers of the Ukrainian system.

  • Gazprom would like to see gas flowing to its European customers. It is already using the existing alternative pipelines (Blue Stream, Yamal1) and the underground storage facilities to compensate the loss of gas.

  • Gazprom has informed the European Commission (Energy Commissioner Piebalgs) that it did not have the possibility to restart the gas deliveries to Europe. Gazprom will continue to inform the European Union about further developments.
13 January 2009

Resumption of Transit Gas Flow Through Ukraine

According to the reached agreements, Gazprom resumed at 10:00 hours Moscow time today gas supplies to European consumers via Ukraine, which it was forced to halt at the fault of the Ukrainian side. The first shipment of gas to the intaking Ukrainian gas pumping stations through the Sudzha station comprised 76.6 million cubic meters a day, of which 62.7 million cubic meters shall be pumped according to contracted volumes towards the Balkans through Orlovka station and 13.9 million cubic meters to Moldovan consumers. 

12 January 2009

At a press conference in Brussels today, Gazprom's Deputy CEO Alexander Medvedev made the following points: 

  • Gazprom will restore gas deliveries to Europe transited through Ukraine, tomorrow, Tuesday, 13 January, at 10am Moscow time, if no further problems occur.

  • Gazprom expressed its gratitude to Jose Manuel Barroso, Andris Piebalgs and Mirek Topolanek for their help in reaching the agreement.

  • Technical instructions for the monitoring process were agreed upon yesterday and the multilateral group of experts will be at five gas metering locations in Russia, as well as locations in Ukraine and EU countries, particularly in Slovakia and Romania.

  • Gazprom underlined the importance of diversification of the gas routes to Europe and supports the establishment of a permanent international gas monitoring group.

  • In terms of energy security, underground gas storage facilities are very important and Gazprom is working on developing them in Austria, France, Germany, UK and Belgium.

12 January 2009

Speaking to journalists in Brussels Gazprom's Deputy CEO Alexander Medvedev said that Gazprom will restore gas deliveries to Europe transited through Ukraine, tomorrow, Tuesday, 13 January, at 10am Moscow time, if no further problems occur.

12 January 2009

"We held talks in Kiev this morning. After the talks the Ukrainian side signed the rules for monitoring natural gas transit via Ukraine without any additional remarks," Deputy Gazprom CEO Valery Golubev told reporters.

11 January 2009

Following the recent developments in the Russia-Ukraine gas dispute, André Mernier, Secretary General of the Energy Charter Secretariat, issued a statement on 9 January 2009 reiterating the principle of uninterrupted transit as one of the core principles of the Energy Charter.

 

He urged "all parties involved to focus their efforts on restoring full operation of gas transit via Ukraine and a speedy resumption of the established gas transit flows."

 

The original statement can be found on:

http://www.encharter.org/index.php?id=21&id_article=166&L=0

 

10 January 2009

Statement from the President Barroso and Commissioner Piebalgs on the agreement for the gas monitoring.

President Barroso said: "Following the intensive efforts of both the Czech Presidency and the Commission, I warmly welcome the agreement to the document setting out terms of reference for the monitoring mission that has been signed by Russia, Ukraine and the European Commission. This should now finally allow the resumption of gas supplies from Russia to the EU.  I particularly thank the Presidency of the Council, Prime Minister Topolanek, for his final efforts to facilitate the deal in Kiev and Moscow.  We now need the gas to flow immediately to the EU.  There are many EU citizens at risk without gas supply, and this situation has gone on for far too long."

"Now that the terms of reference are agreed, the monitoring teams will start to do their work as soon as possible: hopefully there will soon be gas flowing for them to monitor - gas going to the European citizens that need it so badly", declared Commissioner Piebalgs.

Background on the recent actions of the European Union to reach tonight's agreement

Since the cut of supplies from Russia through Ukraine, the European Commission, together with the Czech Presidency, has undertaken an intense activity to achieve the restoration of gas supplies to the EU and to mitigate the dramatic consequences that this crisis has had in many EU Member States.

The Commission, together with the Presidency, sent on Monday 5th January a high level fact-finding mission to Kiev and Moscow. The Head of Cabinet of Commissioner Piebalgs, Andris Kesteris and Director General of DG TREN, Mathias Ruete, led the Commission delegation. The Czech part was composed of Minister of Industry and Trade Martin Riman and by Vaclav Bartuska, Ambassador-at-Large for Energy Security. The delegation met with First Deputy Prime Minister of Ukraine Oleksandr Valentynovych Turchynov. This meeting was also attended by the Deputy Prime Minister for EU Affairs Hryhoryi Nemyrya, Minister of Energetics Yuriy Prodan, and CEO of Naftogaz Oleh Dubyna.

The day after, President Barroso spoke to Prime Ministers Putin and Timoshenko on the phone and urged them to restore full gas supplies to the EU immediately. President Barroso made it clear that it was unacceptable that the EU's gas supply security was taken hostage to negotiations between Russia and Ukraine. He warned that reputation as reliable partners of Russia and Ukraine was at stake. President Barroso insisted that Ukraine and Russia had to find a stable and long-term solution to guarantee reliable gas supplies to the EU.

The Czech Presidency decided to call an extraordinary Energy Council for Monday the 12th of January.

In a new series of telephone conversations in the last couple of days, President Barroso and Commissioner Piebalgs got assurances from both sides that if an international monitoring mission was deployed to control the flows of gas would be fully restored. The European Commission services in cooperation with the European Gas Industry and the European Gas Transmission Operators built up a team of experts to undertake the monitoring mission.

On the 8th the CEOs of Gazrpom, Alexei Miller, and Naftogas of Ukraine, Oleh Dubyna came to Brussels to negotiate the conditions for the mission deployment. Both parties were received by President Barroso who charged Commissioner Piebalgs to reach an agreement, and Minister of Trade and Industry Martin Riman also negotiated on behalf of the presidency. But after a full day of discussions, no agreement on the conditions for the deployment of observers was reached on all sides.

Since the breakdown in talks on Thursday 8th in Brussels, the Commission took further contacts with the Russian and Ukrainian sides. President Barroso spoke with Ukrainian President Yushchenko late on 8 January and again to PM Putin on 9 January, and Energy Commissioner Andris Piebalgs had contacts with his Russian counterparts. On the morning of Friday the 9th, the Commission considered that at this point in time it was imperative that the gas starts to flow to the European Union without any further delay. The first group of observers, chaired by a senior official of the Commission was sent to Kiev to prepare the ground  for the rest of the mission. The other observers flown from different parts of Europe to Berlin to organise the distribution of tasks.

In parallel with these developments, the Gas Coordination Group met in Brussels on 9 January to evaluate the situation in the different Member States and consider possible solutions. The EU Member States met together with countries of the Energy Community in South-East Europe. The Group reviewed the measures taken by industry and the individual countries; the most affected were Bulgaria and Slovakia in the EU and Serbia, Bosnia Herzegovina and FYROM in the Energy Community. Other countries seriously affected were Greece, Austria, Czech Republic, Slovenia, Hungary, Poland, Romania and Croatia which were capable of managing the consequences themselves for a certain period of time. The third group, Germany, Italy and France, although seriously affected, have been able to take the necessary measures and have a manageable situation.

The correct implementation of the gas security of supply directive showed how Member States though heavily struck were able to cope with the crisis, and various Member States, although severely affected, had been able to assist neighbours in difficulty showing real solidarity. The group agreed to meet again on 19 January in Brussels, and the monitoring will continue day by day until normal supplies are resumed.

On 9-10 January, the Czech Prime Minister and the President of the European Council, Mirek Topolánek, visited Kiev, Moscow and then Kiev again to seek written agreement to the terms of reference of the monitoring mission of Russian gas to the EU via Ukraine. The presidency delegation lead by Mirek Topolánek presented a proposal in full agreement with the European Commission to the Russian delegation lead by Prime Minister Vladimir Putin. After the meeting with PM Putin in Moscow, where agreement was reached on 10 January, Prime Minister Mirek Topolánek flaw again to Kiev, where agreement was finally reached early in the morning of 11 January.

Following signature and the deployment of the monitoring mission, the EU considers that the conditions for resumption of supplies of Russian gas to the EU immediately have been fully met.

 

10 January 2009

Alexei Miller’s Comments Following an Agreement Between Russia and the EU to Create an International Monitoring Committee

·         "Deliveries of Russian gas through Ukrainian territory must begin as soon as possible, but now everything depends on Ukraine.” 

·         Miller said that today's meeting between prime ministers of Russia and the Czech Republic is very important in terms of its results, because its outcome was the signing of a document that created a mechanism to monitor the transit of Russian gas through Ukrainian territory.

·         He said that the signing of this document is a very timely step when Ukraine has blocked the supply of Russian gas to Europe.  

·         "Our position is that this mechanism should begin working as quickly as possible. And today we can all say that we are ready for this work. One small detail remains- Ukraine must sign this document. The Prime Minister of the Czech Republic had already left for Kiev. Let’s hope that we will have good news from Kiev today," Miller said.

·         He noted that the committee’s main task is to ensure that Russian gas gets to the western border of Ukraine. He noted that the document signed today specified that the information collected by the committee will be sent to Brussels, Moscow and Kiev.  

·         He said that Alexander Medvedev and other experts from Gazprom will be part of the committee. Miller stressed that the signed document also provides for the full disclosure of the collected data to the press.

·         "If [through the analysis provided by the committee] we see that Ukraine is stealing Russian gas…we will cut gas supplies to Ukraine by that amount.” 

·         He also noted that Russia was prepared to allow monitors at its pumping stations.

·         Once the monitoring committee ensures that there is no more theft of Russian gas on Ukrainian territory, Gazprom will quickly restore supplies.

·         Gazprom has prepared everything for the speedy start of work by the international monitoring committee to monitor the transit of Russian gas through Ukraine. “Our airplanes are ready to quickly fly experts to the designated locations.”

 

10 January 2009

Gas supplies from Ukraine to Bulgaria and Moldova should be increased to the volume of Russian gas siphoned off in Ukraine and consigned for these countries

“Gazprom welcomes the intention of the Ukrainian party to start natural gas supplies to Bulgaria and Moldova. These supplies are to compensate for the Russian gas Ukraine was illegally siphoning off from 1 to 7 January, 2009. The volume of supplies should be increased up to the volume of the Russian gas siphoned off in Ukraine and consigned for these countries,” said Gazprom spokesman Sergey Kupriyanov.

Only official statements, speeches and documents issued by Gazprom represent Gazprom's official position. All other materials are taken from the public media.