Page 13 - FSUOGM Week 33 2022

FSUOGM NEWS IN BRIEF FSUOGM

Russia occupies 35% and with rising food instability, damage to accordance with this decision, Azerbaijan's
Ukraine is rapidly running out of money
oil production quota in July increased by
of Ukraine's electricity infrastructure and a fuel crisis, Ukraine’s 10,000 b/d to 706,000 b/d.
war-weary population is struggling with
industry and 2,209 natural basic necessities. Foreign funding from Russian oil imports to
allies including the US and EU will be
resources deposits used to help pensions, social welfare and
healthcare – areas that require crucial
Russian forces are occupying Ukraine’s attention. resume this week, says
electrical industry and stealing its natural Czech pipeline operator
resources, Ukraine Business News reported
on August 12. Moldova appoints foreign Czech state-owned pipeline operator
Ukraine has lost 35% of its electricity Mero says that a payment will be made to
generation as Russian troops occupy the experts to audit debt to Ukrainian pipeline operator Uktransnafta
east and south of the country, where five to unblock supplies of Russian crude to the
large power plants are located. In total, Gazprom country.
Ukraine is being deprived of 30% of its solar Hungary's MOL Group made a similar
energy, 90% of its wind and over 50% of its The government of Moldova has appointed payment to the Ukrainian operator on
thermal capacity, Forbes reported. Wikborg Rein Advokatfirma AS of Norway behalf of Russia's Transneft in order to
The five occupied power plants have a total and Forensic Risk Alliance & Co of United resume shipments along the Druzhba
capacity of 14 GW, including Europe’s largest Kingdom to carry out an audit on the historic [Friendship] client. Russian oil company
nuclear power plant, the Zaporizhzhia NPP. debt owed by Moldovagaz to Gazprom, Transneft had earlier cut the oil flow
The other plants are DTEK Zaporizhia TPP, estimated by the latter at $800mn. westwards, blaming sanctions for blocking
Kakhovskaya HPP, Vugleghirskaya TPP and The audit report, regarding the natural transit payments.
DTEK Luhansk TPP. Four other plants are gas delivered to Moldova not including Head of the Czech state pipeline
vulnerable to Russian occupation as they are the separatist republic of Transnistria, is operator Mero Jaroslav Pantucek explained
less than 20 km from the front line, with a scheduled for completion on January 30, that the Czech side, where imports from
total capacity of 8GW. 2023. Druzhba are carried out by Unipetrol of
Last week, Russia announced plans to Transnistria’s unpaid bills to Gazprom Polish group PKN Orlen, is not under such
switch the Zaporizhzhia NPP to the Russian are estimated at some $8bn. pressure to find an immediate solution as
grid in order to transfer power to occupied The audit should have been carried the Hungarian MOL Group, which is also
Crimea, which will result in blackouts out by the end of April this year, under a a parent company of the Slovak refinery
across southern Ukraine and make it memorandum signed by the government Slovnaft.
impossible to reconnect to the Ukrainian along with the new contract between the “Czechia has alternative pipeline routes
grid without retaking the plant. two companies last November. which can fully replace Druzhba imports”
Ukraine’s natural resources are also But selecting the audit company failed Pantucek told Czech TV on Thursday
being depleted, with Russia occupying and, in April, Moldova asked Gazprom for pointing out the TAL and IKL pipelines
2,209 energy resources, metal and mineral an extension of the deadline. No answer connecting Czech refineries to the Italian
deposits. Some calculations have put the was provided by the Russian company, port city of Trieste.
total value as high as UAH12.4 trillion, which is entitled to terminate gas supplies Czech Minister of Industry Josef Sikela
although this is likely to be exaggerated. as an effect of the non-compliance with the said on Wednesday that Czech refineries
Currently, Russia has control over 63% of memorandum. can operate for several days without
Ukraine’s coal deposits, 11% of oil deposits, imports.
20% of gas deposits, 42% of metals and 33% Pantucek specified to Czech TV on
of rare earth metals. In addition, Ukraine Azerbaijan fulfilled OPEC+ Thursday that refineries could operate
has lost six iron ore deposits, two titanium for another 12 days on their own, and
ore deposits, two zirconium ore deposits, deal by 128.4% in July additionally, the Czech state reserves
and one deposit of strontium, lithium, contain oil for another 90 days which have
uranium and gold. Kyiv has accused Oil production in Azerbaijan in July was not been activated and he does not expect
Moscow of stealing its resources throughout 549,900 b/d compared to June at the level these to be activated.
the war, including 3,240 tonnes of iron ore of 523,500 b/d, the Ministry of Energy said In line with earlier statements made by
in June. in a statement. the Slovak Minister of Industry Richard
Russia’s occupation is also contributing "Daily production of oil with condensate Sulik, Pantucek also said that transit fees
to Ukraine’s fuel crisis as Russia controls in Azerbaijan amounted to 659,000 barrels are paid on a monthly basis, and that steps
territory containing 41 coal, 27 gas, 14 in July 2022, of which 549,900 barrels fell have been made with the Czech Ministry
propane and nine oilfields. As such, Kyiv to oil production, condensate was 109,100 of Finance to process an exemption from
banned the export of fuel, oil, gas and barrels," the ministry said. EU sanctions affecting transit payments to
coal in June amid concerns for the winter In July, Azerbaijan's oil production Russia's Transneft.
months. quota under the OPEC+ deal was The EU agreed to halt imports of Russian
Russia’s invasion has wrecked Ukraine’s 706,000 b/d. Thus, Azerbaijan completed oil by December 5, 2022, but Czechia,
economy, devastating its two key industries: the OPEC+ deal by 128.4% in July. As Hungary and Slovakia were exempted from
agriculture and metallurgy. An assessment reported, the ministers of the OPEC+ the embargo due to their limited options
from the Kyiv School of Economics countries at the 29th meeting on June to find alternatives for Russian imports,
found that the damage done to Ukraine’s 2, voted to increase the quota for oil effectively keeping Druzhba operations in
infrastructure has reached $108.3bn, which production in July-August by 648,000 b/d place.
has helped accelerate a financial crisis. (by all participants in the transaction). In

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