Page 53 - UKRRptDec21

9.0 Industry & Sectors 9.1 Sector news
9.1.1 Oil & gas sector news
Gazprom will fulfill its contract with Ukraine, moving 40 billion cubic meters of gas across Ukraine to the EU this year, chairman Alexei Miller is quoted by the state energy company’s press service. “Our commitments under the transit agreement with Ukraine will be overfulfilled this year,” he said, referring to the 2020-2024 contract. “It is said. It is done.” Through October, the Russian company has moved 35.3 billion cubic meters through Ukraine’s pipeline system. This leaves 4.7 bcm for November and December.
Ukraine will lose $1.2 bln in gas transit revenues from the launch of NordStream 2. The estimate was made by the IMF to 2026, as long as the current transit contract with Gazprom is in force. Over the past five years, Ukraine has received an average of just over $ 2.5 bln a year in revenue for providing its gas pipelines to Gazprom. Transit fees are expected to be about 40% lower in 2021 than in previous years, reported Interfax.
The launch of the Nord Stream 2 gas pipeline is expected to reduce Ukraine's gas transit revenues by about $ 1.2 billion a year until 2024, as long as the current transit contract with Gazprom is in force, the International Monetary Fund (IMF) said in the materials of the first review of the Stand-By Arrangement for Ukraine.
Gas prices in Ukraine have set new records at the end of November. In the period from 22 to 26 November, the price of natural gas reached new record highs following the trends of European hubs, reported Interfax. Artificial restrictions on gas markets have had a negative effect on last week's price situation. European companies are not increasing imports at record prices but are using fuel bought at a lower price earlier. As reported with reference to the Gas Infrastructure Europe Association, the extraction of gas from underground storage facilities in Europe in November 2021 will reach its maximum level for the period of observations of the association, starting in 2011.
The US to impose new sanctions on Nord Stream 2. The announcement was made in a statement by the Secretary of State, Anthony Blinken on November 23. The State Department had submitted a report to the US Congress listing two ships and the Russian-related company Transadria Ltd which are involved in the project. The report is submitted under the European Energy Security Protection Act 2019 (PEESA). “Transadria Ltd. will be subject to sanctions under PEESA, and its vessel Marlin will be identified as blocked property,” said Blinken. He stressed that in total, the US administration has already imposed sanctions on 8 people and identified 17 of their vessels as blocked property
53 UKRAINE Country Report December 2021 www.intellinews.com