Page 15 - FSUOGM Week 26 2022

FSUOGM NEWS IN BRIEF FSUOGM

website, Reuters reports. An Indian Makogon did talk about several difficulties necessary amendments have already passed
shipping source told Reuters that most of the GTS has faced since the invasion on the relevant government commissions.
Sovcomflot's vessels had now migrated to February 24, particularly at the Novopskov Notably, the government has reportedly
IRClass, via the Dubai arm. compressor station in the Luhansk region, decided to raise additional taxes from
which is under occupation. Gazprom despite the pipeline exports
monopolist recently pledging to pay a
Naftogaz increases Ukraine's oil refining record RUB1.2 trillion in dividends for
2021, out of which half was transferred to
payments to Ukraine's industry has completely the budget.
Gazprom’s shareholder meeting is to
state budget by 34% and stopped due to Russian finalise the dividend on June 30, 2022 and
it is possible that the company will bargain
prepares to sue Russia's attacks’ with the ministry, as it has done in the past.
Previously in 2015 the government had
Gazprom The CEO of Naftogaz, Ukraine’s state-owned from the company and again suggested the
already used the MET to raise extra taxes
Naftogaz, Ukraine’s state-owned oil and gas oil and gas company, has announced that same in 2018.
company, increased payments to the state the country’s entire oil refining industry is Analysts surveyed by Kommersant
budget by 34.3%, Ukraine Business News not working due to targeted Russian rocket estimated that increasing the MET would
reported on June 22. attacks, the Kyiv Independent reported on cut Gazprom's net profit in 2022 by
From January to May 2022, the company June 22. RUB323bn, or 14%, and dividend payments
contributed payments to the state budget "Unfortunately, these strikes actually by RUB161bn, or about RUB7 per share.
totalling UAH47bn ($1.55bn), according to started from the first days of the war… A memo attached to the taxation
the CEO, Yuriy Vitrenko. All oil refining in Ukraine is currently not amendments links the decision to hike the
“According to the results from the first working due to massive repeated attacks by MET for Gazprom to high gas prices on
five months of this year, during the war, we the aggressor, and it is difficult to provide the European market. Spot prices for gas
increased revenues to the state budget by logistics for oil products on the Ukrainian in Europe more than quadrupled in 2021,
34.3% compared to last year,” Vitrenko said. market, which leads to their shortage," CEO from $240 per 1,000 cubic metres to more
Under instruction from the Cabinet of Yuriy Vitrenko said in a press conference. than $1,000 by the end of the year.
Ministers, Naftogaz must direct 95% of its This comes as Russia’s oil depots and In February, prior to the invasion of
profits to the state budget, amounting to oil refineries have experienced explosions Ukraine, Finance Minister Anton Siluanov
UAH12.4bn ($413mn). and attacks. On June 22, a video showing commented that Gazprom’s taxation should
The company is also preparing to sue a drone targeting the Novoshakhtinsk oil be weighed against the high costs of the
Russian state-owned company Gazprom refinery in Russia’s Rostov region went gasification programme, covered in detail
over a gas transit contract, Russian state- viral, leading many to believe Ukraine had by bne IntelliNews.
media Tass reported on June 22. conducted the attack. In 2021 Russia considered options
The general director of Ukraine’s gas It appears that both sides are attempting for funding a $25bn, 10-year gasification
transportation system (GTS), Serhiy to take out the other's ability to refine oil. programme, with the government
Makogon, accused Gazprom of not paying Russia has targeted several Ukrainian oil previously reportedly suggesting the issue of
for transit in June in full. “This is a violation refineries since March as part of a tactic to new shares in Gazprom as a solution.
by Gazprom of the principle of the transit limit the Ukrainian armed forces’ ability to
agreement ‘swing or pay’,” he said. “Today, manoeuvre effectively.
Gazprom is obviously paying less than it Moreover, Ukrainian President Lukoil raises stake
should under the contract, without any legal Volodymyr Zelenskiy recently banned the
grounds”. export of oil, along with coal and gas, as the in JV with Gazprom
Yuriy Vitrenko also announced that country needs to store enough for domestic
a $12bn claim against Gazprom for use amid concerns for the coming heating Layavozhneftegaz to 50%
potentially impairing gas deliveries, which season. This may exacerbate concerns.
Naftogaz dropped in 2019, will be reopened. Russia’s Finance Ministry plans to tap the
According to Tass, the case is politicised natural gas giant Gazprom for RUB416bn
and the hearing may take years, whilst Russia’s FinMin to tap ($8bn) in additional Mineral Extraction Tax
a final decision may be impossible to (MET) in 2022, Kommersant daily reported
implement. Gazprom for $8bn extra citing unnamed sources that claim that
There has been a large drop in gas transit necessary amendments have already passed
through Ukraine’s GTS. From January to taxes the relevant government commissions.
April this year, 9bn cubic metres of gas Notably, the government has reportedly
passed through Ukraine’s GTS, compared Russia’s Finance Ministry plans to tap the decided to raise additional taxes from
with 14 bcm in the same period in 2021, natural gas giant Gazprom for RUB416bn Gazprom despite the pipeline exports
according to Makogon. ($8bn) in additional Mineral Extraction Tax monopolist recently.
Despite the war, the gas transit business (MET) in 2022, Kommersant daily reported
has continued unabated. However, citing unnamed sources that claim that

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