Irina Kashina, Yelena Reznik
The tripartite protocol not working, gas transits still suspended
Resuming gas transit through Ukraine postponed again as Russia admits interest in transit pipeline
Russia is ready to take part in the privatisation of the Ukrainian gas pipelines, "if Ukraine takes this step", Prime Minister Vladimir Putin said in an interview to Germany's ARD TV channel cited by Interfax.
That was Kiev's greatest fear. Gazprom is fighting for the right to control the transit pipeline, Ivan Diyak, Ukrainian President's gas advisor, told Vedomosti the day before. That was the reason behind the Kremlin's hard-line stance and Gazprom's unprecedented decision to completely suspend gas transit to the EU via Ukraine on January 7.
The possibility of Gazprom taking part in managing the Ukrainian transit pipeline was raised in all the previous gas disputes between Moscow and Kiev, former Gazprom manager says.
Oleksiy Hudyma, advisor to the Ukrainian Prime Minister, says he is not aware of Russia negotiating to buy a share in the Ukrtransgaz, a gas transit subsidiary of Naftogaz.
The Russian Government has refused to comment on this. Gazprom has dismissed any speculations as well.
Meanwhile, gas transit to the EU has not been resumed. Vladimir Putin says Gazprom has suffered losses of $800 million, with the company's corporate image damaged and over 100 wells shutting down.
Yesterday, President Dmitry Medvedev mentioned two conditions required for the gas transits to be resumed: Ukraine should sign the protocol on international control over gas transit approved by Russia and independent observers need to arrive to gas measuring stations to start monitoring.
One of the two points has already been met, as the observers have left for their stations, Naftogaz and Gazprom say.
The other point is more difficult. The protocol mentioned by Medvedev was signed by Russia on Saturday, by Ukraine in the early hours on Sunday, and by the European Commission on Sunday morning, says Ferran Tarradellas, an EC representative. "Gas deliveries to Europe may be resumed within 36 hours," Czech Prime Minister Mirek Topolanek said.
Ukrainian Prime Minister Yulia Tymoshenko, however, made several amendments to the protocol, which weren't accepted by Gazprom afterwards, two Gazprom employees say. The amendments don't change the main point, which is the rules for observers accessing the facilities, Hudyma and Tarradellas say.
Nevertheless, President Medvedev ordered to postpone the execution of the protocol until Kiev withdraws the "derisive" amendments.
Gazprom and Naftogaz have not commented on what will become of the protocol. Another round of negotiations with Gazprom is probably needed, which will protract the process further, a Gazprom employee says. "We think all the conditions set forth by Gazprom have been met and now there can be no excuses for suspending the gas supplies to the already strongly affected European partners any longer," Tarradellas says.
Ukraine and Russia will have to negotiate the gas price for 2009 and transit rate for Gazprom, as well as define the amount of Ukraine's debt for 2008 and the gas siphoned off by Naftogaz between January 1 and January 6. Russia's offer is $450 for 1,000 cubic metres for January, a transit rate of $3.4 for the transportation of 1,000 cubic metres per 100 km compared to $1.6 in 2008, as Vladimir Putin mentioned lately. The 2008 debt is estimated at $614 million. Vladimir Putin advises to issue a loan to Ukraine to pay off the debt. Ukraine, however, doesn't acknowledge the debt and offers to pay $200 for 1,000 cubic metres. It considers the transit rate of $2 as fair, Hudyma says. Yesterday, Tymoshenko said Ukraine will pay for the technical gas siphoned off in early January at some point in the future.
Hudyma doubts a privatisation of Ukraine's gas pipelines is possible, as the negotiations would take too long even if the Government decides to do so.
Former Gazprom Deputy CEO Alexander Ryazanov is sure Ukraine won't let Russia be in charge of the pipeline. "This is possible only if Gazprom participates in the matter alongside with European or US companies," he says. Such a scheme is nothing new. In 2002, Russia and Ukraine signed an agreement to establish a gas transit consortium to manage the Ukrainian pipeline, which would be owned in equal share by each country. In 2003, Germany joined the deal. The agreement, however, remained on paper, with the Ukrainian legislation prohibiting the privatisation of the pipeline.
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Close to perfection
According to the UNIAN news agency, Yulia Tymoshenko said the protocol signed by Ukraine features five very important points (which are not included in the version posted on the Gazprom website): Ukraine has always been a reliable gas transiter; Ukraine's role in talks with Russia has been constructive; Ukraine did not siphon off gas in the period following January 1; and Ukraine initiated the invitation of international experts.
