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Lawmakers thus went further than the European recently accused the company’s management of
Commission’s proposal, which was to revise the corruption, in a case suspected to be politically
target to 55%. motivated.
Parliament must now agree the final law with Hochstein complained that the company’s
the EU’s 27 member states. Wealthier states such management’s efforts over the years to “create a
as France and Germany, which have significant new corporate culture, transparent mechanisms
clean energy capacities, are likely to support the and an adherence to international standards
deeper cuts. However, coal-reliant countries were resisted at every step of the way.”
like Poland and the Czech Republic are likely to Ukraine’s anti-corruption prosecutor’s office
resist, amid concerns about the economic fallout. has said it suspects Naftogaz’s top executives of
Rather than undermining the drive towards stealing UAH730mn ($26.3mn) of natural gas
decarbonisation, the coronavirus (COVID- supplies in 2016-2017 in a treason case. Naftogaz
19) crisis has led the EU to step up its efforts CEO Andriy Kobolev insists the company has
to become cleaner. Last month, the European “nothing to hide”, while Hochstein has described Rather than
Parliament also backed the inclusion of pollu- the prosecutor’s suspicions as “unfounded
tion from shipping in the EU emissions trading allegations.” undermining the
system. This is another proposal that could face “The old tactic of using prosecutors and audi-
opposition from some less affluent member tors for intimidation and retaliation is back,” drive towards
states, though. Hochstein said. “I can no longer stand by and be decarbonisation,
Meanwhile, Denmark’s latest offshore licens- used to endorse this negative trend, and it’s why
ing round remains in limbo over climate con- I must voluntarily leave the board.” the pandemic has
cerns. The government has called on political Hochstein’s departure is reminiscent of the
parties to discuss the future of oil and gas explo- resignation of all Naftogaz’s independent direc- led the EU to step
ration and decide whether the contest should tors in 2017 in protest over the authorities’ lack
go ahead. The round was launched last year and of commitment to reform. President Volodymyr up its efforts to
attracted offers from France’s Total, Sweden’s Zelenskiy has promised to fast-track reforms and become cleaner
Lundin Petroleum, Hungary’s MOL and Ardent ensure greater independence at state institutions.
Oil of the UK. But all of these companies have But Hochstein’s comments – and the resignation
withdrawn their bids, save Ardent. of Ukraine’s central bank governor Yakiv Smolii
Lastly, Norway’s Equinor has announced in July over what he said was “sustained political
delays and cost overruns at several key fields, pressure” – suggest otherwise.
blaming the setbacks on the coronavirus pan- Meanwhile, Poland’s competition watchdog
demic and the impact of a weaker Norwegian UOKiK said on October 7 it had fined the Rus-
krone. The projects in question are Martin Linge, sian gas supplier Gazprom PLN29bn ($7.6bn)
Johan Castberg and Njord Future. for going ahead with Nord Stream 2 without its
consent.
If you’d like to read more about the key events shaping Gazprom’s financing agreements with its
Europe’s oil and gas sector then please click here for European partners effectively established a
NewsBase’s EurOil Monitor. de-facto joint venture, the regulator argues,
meaning its approval was needed because of the
FSU: Political interference at Naftogaz pipeline’s impact on the Polish gas market.
US businessman and former diplomat Amos Gazprom has vowed to appeal against the
Hochstein has resigned as an independent decision, setting Poland and Russia on a course
director on the supervisory board of Ukrain- for an arbitration dispute that could last years.
ian national gas company Naftogaz, complain-
ing of opposition to reforms and of political If you’d like to read more about the key events shaping
interference. the former Soviet Union’s oil and gas sector then please
His departure comes after prosecutors click here for NewsBase’s FSU Monitor .

P8 www. NEWSBASE .com Week 41 14•October•2020