Page 14 - FSUOGM Week 39 2022

FSUOGM NEWS IN BRIEF FSUOGM

and downstream segment exposure. employment amounted to UAH104bn reported as saying that the Netherlands
BCS Global Markets remind that ($2.82bn). A further UAH72bn ($1.95bn) revoked its licence as of September 17.
Tatneft’s highest production level in modern failed to reach the state budget due to "Suspend the execution of all contracts
history was 29.8mn tonnes in 2019, and changes to the tax and customs legislation related to the technical support of the gas
27.8mn in 2021, seeing the new 40.5mn implemented when the invasion began. pipeline," Aksyutin was cited as writing in
tonnes target as “fairly aggressive target, but Ukraine’s 2023 State Budget will see the letter, "including design, manufacture,
likely achievable”. a considerable increase in spending on assembly, testing, repair, maintenance, and
“Unfortunately, the onset of OPEC+ defence and security, accounting for 17.8% training."
production restrictions from 2017 limited of GDP. Moreover, pensions, subsidies, South Steam has the capacity to annually
the company’s ability to fully meet its oil payments to IDPs, assistance to low-income deliver 33bn cubic metres (bcm) of natural
output targets, but for brief periods it has families and expenses for medicine and gas. Turkey consumes half of that provision,
shown an ability to increase output well education will increase by UAH30bn. while the rest is sent on a pipeline
above typical levels,” BCS GM analysts However, the spending on state (sometimes referred to as Balkan Stream)
believe. authorities will decrease by UAH11.6bn, dedicated to deliveries via Bulgaria to the
BCS GM sees the biggest remaining meaning the number of officials, salaries Balkans and Central Europe, especially to
obstacle as logistical in the light of the and bonuses will be reduced, with the Serbia, North Macedonia and Hungary.
current sanctions regime for Russia’s exception of law enforcement agencies. RFE/RL pointed out that TurkStream
military invasion of Ukraine and the lies 3 kilometres below the sea in waters
upcoming European embargo on Russian “The State Budget 2023 is the budget of with high seismic activity. It said specialised
oil. a country in a war that has been suffering ships frequently monitor the infrastructure
Tatneft posted IFRS results for 1H22 significant losses for more than six months for damage and make rapid repairs. The
showing $10bn of revenues, $3.5bn of due to the full-scale military invasion of required monitoring and repair equipment
EBITDA and $2bn net profit for the period. Russia on the territory of Ukraine,” Minister is mainly imported from the West.
Tatneft was also the first company in the oil of Finance of Ukraine Sergii Marchenko The contract revocation meant that "no
and gas sector to announce a post-Ukraine said. one will be able to carry out repairs if a pipe
invasion dividend.. “The 2023 State Budget is the budget is damaged, gas leaks, or if a part of the
of a country that will become stronger, pipeline comes apart due to an earthquake.
strengthen its defence capabilities, be able to In fact, the company has lost operational
Ukraine's State Budget rebuild after the damage caused by Russian control over the pipeline, the Russian
branch has lost contact with the corporate
armed aggression, and also take care of
severely weakened by those citizens who need it,” he added. centre," a Russian source at South Stream
Transport B.V. informed RFE/RL.
depletion of Russian gas Report says Russian of using the Ukraine war sanctions imposed
Western countries have accused Moscow
flow on Russia by the West as a pretext to cut gas
exports to Europe. Russia’s plan, they say,
Ukraine has lost a significant chunk of gas supplies to Europe is to deal Europe severe economic blows
revenue from the depletion of Russian via TurkStream now and potentially leave European households
gas transit through the country caused by exposed to winter weather, thereby
Moscow’s invasion, Ukraine Business News endangered undermining support for the EU’s backing
reported on September 20. of Ukraine.
After Russian forces occupied the Russia is reportedly taking the position The EU last year received 40% of its gas
Sokhranivka entry point and damaged that Western sanctions prevent it from needs from Russia, but many member states
pipelines, in addition to Gazprom refusing maintaining the crucial TurkStream natural now want to wean themselves off Russian
to send enough gas, thereby breaking its gas pipeline that supplies Turkey, countries gas supplies entirely, seeing it has a now
contractual agreement with Kyiv, Ukraine’s in the Balkans and Hungary. hugely unreliable supplier that has become a
state budget only earned $94mn from If the pipeline was to be shut down, it threat to their energy security.
Russian gas transit in the first half of 2022. would exacerbate Europe's energy crisis, Hungary Today on September 29
This is a huge drop from the $3bn Ukraine already this week worsened by mysterious reported Hungarian foreign minister Peter
earned during the whole of 2020. explosions that have put three of the four Szijjarto as telling a meeting of energy
Currently, Gazprom is only sending strands of the Nord Stream Russia-Germany ministers from the Organisation of Turkic
41mn cubic metres of gas per day through two-pipeline system beyond repair. States (OCT) in Almaty, Kazakhstan,
the Sudzha pipeline, even though it is In a letter to managers of South Stream that without an operational TurkStream,
paying for the amount of 109.6 mcm. Transport B.V. on September 14—obtained Hungary would be in big trouble.
However, if Moscow entirely ceases gas by media outlet RFE/RL—company director
transit through Ukraine next year, Ukraine’s Oleg Aksyutin ordered them to cease all Turkish President Recep Tayyip Erdogan
state budget could take a hit of UAH11.15bn work on TurkStream, including cancelling has this week briefed reporters that he
($312mn) as the Gas Transmission System contracts with Western suppliers. foresees no problems affecting Russian gas
Operator of Ukraine (GSTOU) will be South Stream Transport B.V., a Dutch supplies to Turkey this winter.
unable to pay VAT and income tax to the unit of Kremlin-controlled gas giant
state budget. Gazprom that is responsible for operating
From January to June 2022, it is the underwater Black Sea pipeline that
estimated that the loss from Ukraine’s provides a key route for Turkey-bound
imports, GDP, profits of enterprises and and Balkans-and-Hungary-bound gas, was

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