Rada ex-deputy explains Ukraine’s fear over Nord Stream-2

With the help of the Nord Stream-2 and Turkish Stream gas pipelines, Russia will be able to completely replace the capacities of the Ukrainian gas transmission system (GTS), said former Verkhovna Rada deputy Yevgeny Muraev. The politician posted the video with his speech on the air of the TV channel “OUR” on YouTube.

So Muraev commented on the signing on December 20 of the protocol on gas cooperation between Russia and Ukraine. In accordance with it, in order to continue transit, Gazprom will conclude an inter-operator agreement with the GTS Operator of Ukraine, and with Naftogaz an agreement on booking transportation capacities. According to the plan, next year the Russian group will reserve capacities for transit of 65 billion cubic meters of gas, and in 2021-2024 – 40 billion cubic meters each when establishing a competitive tariff.

With the help of the Nord Stream-2 and Turkish Stream gas pipelines, Russia will be able to completely replace the capacities of the Ukrainian gas transmission system (GTS), said former Verkhovna Rada deputy Yevgeny Muraev. The politician posted the video with his speech on the air of the TV channel “OUR” on YouTube.

So Muraev commented on the signing on December 20 of the protocol on gas cooperation between Russia and Ukraine. In accordance with it, in order to continue transit, Gazprom will conclude an inter-operator agreement with the GTS Operator of Ukraine, and with Naftogaz an agreement on booking transportation capacities. According to the plan, next year the Russian group will reserve capacities for transit of 65 billion cubic meters of gas, and in 2021-2024 – 40 billion cubic meters each when establishing a competitive tariff.

“To understand what is happening, you need to understand the capacity of the Ukrainian gas transmission system – this is about 145 billion a year – and the capacity of the bypassing gas pipelines: two lines of the Nord Stream – 55 billion each and the Turkish Stream – a little over 30. That is these bypassing gas pipelines completely replace the capacities of the Ukrainian gas transmission system”, – said the former deputy.

The ex-parliamentarian recalled that due to US sanctions, the construction of the Nord Stream 2 may be delayed, therefore, Muraev believes, “talks about 65 billion cubic meters of gas” that will be transported through the Ukrainian gas transportation system are just the volumes that Russia temporarily cannot deliver through alternative routes without violating obligations to Europe.

Muraev also said that in the next five years, his country will face significant losses, compared with the outgoing year.

“When we transited about 95 billion (cubic meters of gas. – Ed.), we received three billion dollars of gross income, of which 40 billion cubic meters must be pumped to provide gas transportation, this is the self-cost”, – the politician said.

He explained that $ 1.2 billion was spent on providing the GTS, so Ukraine earned only the remaining 1.8 billion. However, Muraev added, in 2020, with the transportation of 65 billion cubic meters of blue fuel, Kiev, while maintaining the previous transit price, will receive only $ 900 million of net income, and if the transit falls to the level of 40 billion, the losses will be even greater. According to the ex-deputy, in five years the Ukrainian budget will receive less than eight billion dollars.

In addition, Muraev suggested that Kiev will not be able to provide a competitive tariff, since the price of pumping gas through new Russian gas pipelines will be lower.