Page 11 - FSUOGM Week 24 2022

FSUOGM POLICY FSUOGM

Kremlin expects no further cut-offs

in gas supply to Europe

RUSSIA RUSSIA does not expect any further cut-offs in gas The EU itself is striving to phase out Russian
deliveries to Western companies beyond those that gas supply, with the European Commission
Those that refused have already lost their supply, Kremlin Spokesman calling in its REpowerEU plan for a reduction
to comply with the Dmitry Peskov announced on June 9. in imports from the country of as much as two
Kremlin's rubles-for-gas The Kremlin issued a decree at the end of thirds within a single year. But analysts are scep-
decree have already March that required gas customers in non- tical that this can be achieved in such a short
had their supply cut off. friendly countries to set up special accounts at period.
Gazprombank, where their bills will be con- Hungary has been the most vocally opposed
verted from euros and dollars into rubles before to an EU ban on Russian gas, similar to the
being transferred to Gazprom. Since then, Bul- embargoes on Russian coal and oil that the bloc
garia, Finland and Poland have all had their has already introduced. Hungarian Foreign
supply cut off, as well as some companies in Minister Peter Szijjarto on June 10 dismissed
Germany, Denmark and the Netherlands. such a ban as “impossible.”
Gas payments under the new scheme were “When we impose sanctions, then we have to
due in April and May. All those companies that make sure that those sanctions are hurting more
refused to comply with the Kremlin’s decree have those against whom we impose the sanctions
already had their supply cut off and the Kremlin than ourselves,” Szijjarto told CNBC. “We have
does not anticipate any further disconnections, to have a very clear position on the war, which
Peskov told reporters. we do have, we condemn Russia for this military
“No, the system is working, the system has aggression. We stand with Ukraine. But we have
been fixed, and those who receive gas are already to take into consideration reality as well.”
working under the new terms set by the presi- Hungary relies on Russia for 85% of its gas
dential decree,” Peskov said. supply, and 65% of its oil. ™

Cost of utilities not to rise: Zelenskiy

UKRAINE PRESIDENT Volodymyr Zelenskiy has urged "Together, we will make every effort to pro-
the government and local authorities to keep vide warmth to the homes of our people," Cher-
The Ukrainian president the cost of utilities down to pre-war levels for the nyshov said.
warned though that the winter season, Epravda reported on June 8. Last month Naftogaz Trading announced the
coming winter would be Zelenskiy addressed the nation on the evening price increase of fixed gas volumes for fuel and
the most difficult since of June 7, claiming this will be the “most difficult energy companies from June 1, causing concern
its independence. winter of all the years of independence” as the for the future heating season. The new prices
country struggles with the devastation of war. rose by three and a half times: from UAH7,900
"I would like to emphasise that I have set a ($247) to UAH29,400 ($919) per thousand cubic
very specific task for the government – to do metres of gas.
everything to ensure that gas and electricity tar- Oleksandr Minkovych, the chairman of the
iffs do not change in the next heating season. It is Kharkiv CHP-5 thermal power plant (TPP),
difficult for people because of the war. It will be which was forced to suspend operations due to
provided,” he announced. the new prices, recently called on officials to take
He also mentioned that Ukraine will not sell action before the start of the colder months.
any gas and coal abroad but rather save it for Although fuel prices have surged dramati-
domestic use to prepare for the winter period. cally in Ukraine, the director of the A-95 con-
The government also announced the forma- sulting group, Serhiy Kuyun, predicts that prices
tion of the “headquarters for the preparation of will decrease as petroleum products gradually fill
housing and communal services and the fuel and the market.
energy complex for the autumn-winter period of Prices for gasoline and diesel fuel jumped
2022/23”, Ukrinform reported on June 7. by 30% between May 16-23, hitting UAH52-55
Minister of Community and Territorial per litre and UAH58-60 per litre respectively.
Development Oleksiy Chernyshov noted that Kuyun stated that the state-regulated fuel price
Russian shelling has damaged many critical facil- of UAH40-45 per litre was fair for a stable, well-
ities which need to be repaired by the authorities off market, although Ukraine is not currently in
in time for winter. this position. ™

Week 24 15•June•2022 www. NEWSBASE .com P11