Page 14 - FSUOGM Week 08 2022

FSUOGM NEWS IN BRIEF FSUOGM

intention to build it. declared gas export from Azerbaijan courts ruled to suspend the NACP’s letter,
Pakistan has been seeing its own gas amounted to $803mn (an increase of eight while such ruling was effectively cancelled
reserves deplete in recent years. times). by the Supreme Court on February 2.
It is unclear how much natural gas However, SCC does not publish In a parallel lawsuit in June, PM Denys
Kazakhstan would export to Pakistan. a breakdown by countries to which Shmyhal appealed against the NACP
expected to arrive in February and March. Azerbaijani gas was exported. SCC prescription directed to the Cabinet. In
maintains statistics on exports based on the this trial, a first-tier court ruled to suspend
declaration. The declaration on the sold gas the NACP’s letter, but an appellate court
Azerbaijan's revenue from is provided after the actual sale, and not at overturned that ruling. Shmyhal appealed
against the negative ruling to the Supreme
the time of its pumping through pipelines.
oil exports increased by reported that the volume of Azerbaijani gas Court, but the case has been stuck there.
Earlier, the pipeline company TAP AG
The Supreme Court’s ruling implies
almost half in January exported to Europe via TAP from December that the NACP’s letter to the head of the
31, 2020, to December 31, 2021, amounted
Naftogaz board prescribing to dismiss
The export of declared oil from Azerbaijan to 8.1 bcm. Of this volume, over 6.8 bcm Vitrenko is valid. This, however, does not
in January 2022 amounted to 3.5mn were delivered to Italy, and about 1.2 bcm to mean that Vitrenko will be dismissed
tonnes, which is 12.7% lower than in Greece and Bulgaria. any time soon: the Naftogaz board was
January last year, according to the State Azerbaijani gas supplies via the TAP gas dismissed in October, meaning there
Customs Committee (SCC) data released on pipeline to consumers in Italy, Greece and is nobody to implement the NACP’s
February 17. Bulgaria began on December 31, 2020. In prescription. As there is no clarity about the
The total value of oil exported during addition, Azerbaijani gas is also exported to timing of a possible Supreme Court ruling
the reporting period amounted to $2mn Turkey (through the TANAP gas pipelines on the NACP letter to the Cabinet, Vitrenko
(an increase of 49.4%). The share of oil in and the South Caucasus Pipeline, SKTM) has a high chance of retaining his position
the total export structure in January 2022 and Georgia (through the SKTM and as CEO until April 28, when the one-year
amounted to 65.81% (83.73% in January through the Gazimagomed-Gazakh gas period mentioned in the NACP letters
2021). The average price for Azerbaijani pipeline). expires. From that date, he won’t have any
oil in January 2022 was $77.3 per barrel. legal limits against his occupying the CEO
In January, 16 countries were buyers of position in Naftogaz. In the end, these legal
Azerbaijani oil. Supreme Court allows issues do not undermine the fundamentals
According to the State Customs of Naftogaz, even though they bring nothing
Committee, traditionally, Italy remains the Naftogaz supervisory board positive to the company’s image.
main buyer, which accounted for 50.1% of
all exports of "black gold" in January 2022. to dismiss Vitrenko
In addition to Italy, the top three buyers Italian prime minister says
also included Ukraine and Israel. In general, Ukraine’s Supreme Court ruled to cancel the
Azerbaijani oil was mainly supplied to rulings of lower courts that had suspended Putin ready to raise gas
European countries, although Thailand, the NACP prescription demanding that the
Tunisia, and Turkey also remain among head of the Naftogaz (NAFTO) supervisory supplies
regular buyers. At the same time, the list of board dismiss Yuriy Vitrenko from the
buyers in January does not include China, position of CEO on February 2. Recall, in President Vladimir Putin said Russia was
India, Vietnam, Croatia, France, Belarus, July, the National Agency on Corruption ready to raise natural gas sales to Italy,
Canada, Indonesia and a number of others. Prevention (NACP) directed letters to Italian Prime Minister Mari Draghi said in a
The structure of oil exports in January 2022 Ukraine’s Cabinet and the Naftogaz news conference late on February 18.
by main buyer countries: supervisory board head prescribing them “Putin mentioned the possibility to
to cancel the contract with the Naftogaz continue ensuring supplies of gas and to
CEO. Vitrenko was appointed to the CEO raise them if necessary. It should be taken
Azerbaijan increased gas position on April 28, the same day he left in light of our obligations to our allies, on
the effect of the sanctions. I appreciate the
the position of acting energy minister.
exports by 44% in January The NACP found a potential conflict of obligation, but it remains an obligation so
far,” he said.
interest in this appointment, referring to
The export of gas volumes declared at Ukraine legislation. The legislation does On January 26, at a video conference
the customs from Azerbaijan in January not allow a person to occupy top positions with the top managers of Italian businesses,
2022 amounted to 1.6bcm, which is 44% in a company which this person could have Putin pointed to reliability of Russian
higher than in January last year, according controlled or overseen at a government energy exports to Italy. The country gets
to the data released by the State Customs position within the last year. Russian gas at prices below the market
Committee (SCC) on February 17. Gas Later in June, Vitrenko appealed against thanks to long-term contracts, and the
supplies in the reporting period accounted the NACP prescriptions directed to the exports grew by 2 billion cubic meters on
for 26.02% of Azerbaijan's total exports head of the Naftogaz supervisory board. the year in 2021, he said.
(6.16% in January 2021). The cost of On Vitrenko’s claim, first-tier and appellate

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