Page 13 - FSUOGM Week 35 2021

FSUOGM NEWS IN BRIEF FSUOGM

now, this autumn, European transit agreement, under which the development the three-year investment programme to
companies must book long-term Ukrainian bank undertook to increase the share capital promote the socioeconomic development
transit capacities. In addition to contracts of Vestmoldtransgaz by €20mn to finance of the self-proclaimed Republic of Abkhazia
with European companies, we are ready to the development costs of the Ungheni- for 2020-2022.
extend the current contract with Gazprom. Chisinau gas transmission pipeline. The project appeared after Abkhaz
This is not about stopping gas transit right Vestmoldtransgaz was set up in 2014 president Aslan Bzhania, during a meeting
now. We are talking about the fact that to manage the gas pipeline network in the in the summer of 2021 with Russian
Gazprom can also book capacity for transit west of Moldova, where it provides gas President Vladimir Putin, asked for help
through Ukraine after 2024," he said. transmission services. In 2018, it was taken with the gasification of the republic.
"European companies under current over by Eurotransgaz SRL, a subsidiary of The energy crisis in Abkhazia has been
contracts must be able to change gas Romania’s Transgaz. going on since the autumn of 2020. The
transmission points and book capacity “The Ungheni-Chisinau gas transmission only source of electricity for the republic is
independently to receive gas at the pipeline, connecting the Moldovan gas Georgia's Inguri hydroelectric power station.
Ukraine-Russia border. Gazprom, if it network to the European Union via Around 40% of its output goes to Abkhazia,
wants to supply any additional volumes to Romania, is an important step towards with the remainder going to Georgia.
Europe, can do so through the Ukrainian geographical diversification of Moldova’s Abkhazia has faced acute electricity
GTS. There are no obstacles preventing energy supplies,” commented EBRD vice- shortages, primarily due to illegal
this," Vitrenko added. He also stated president Alain Pilloux. cryptocurrency mining. Despite a ban and
that he wants to “explore a consortium “Having invested in a 25% stake in ongoing police raids on illegal operations,
with European companies or American Vestmoldtransgaz, the EBRD is playing the problem persists.
companies which would take on the role of a key role in strengthening the country’s The dramatically increased load on the
operator.” energy security and contributing to power grid leads to permanent breakdowns
Vitrenko’s comments come after the first sustainable economic growth that benefits in different parts of Abkhazia. Throughout
steps of a German-Ukrainian agreement everyone.” . the winter, power cuts lasted for up to
over the development of hydrogen in several days. Since June, when the tourist
Ukraine was reached. He noted that for season began, there have been rolling
Ukraine, transit is a key source of funding blackouts scheduled for two hours daily.
for the transformation of the Ukrainian CENTRAL ASIA & SOUTH With the end of the holiday season,
energy sector, which Naftogaz believes will power outages will be increased to six hours
require $100bn to fulfil. "Ukraine receives CAUCASUS a day.
quite a lot of revenue from gas transit. We Abkhazia was not supplied with gas
have a contract until 2024 that provides Nostrum disposes of field in during the time of the Soviet Union and
Ukraine with guaranteed income of has remained without a gas pipeline. Small
$7.2bn. If transit is prolonged, for example, Kazakhstan consignments of liquefied gas are imported
for another 10 years after 2024, this can to the republic, which are then sold in
guarantee Ukraine an additional $20bn. Oil firm Nostrum Oil & Gas has said it's cylinders.
This is a significant source of financing disposed of its rights and obligations under
for Ukraine’s "green transition," which a subsoil use contract for Rostoshinskoye
Germany has promised to finance as part field in Kazakhstan. Nostrum posts 0.4% y/y
of a deal cut with the United States over The field’s exploration period under
Nord Stream 2. Chancellor Angela Merkel, the contract was scheduled to expire on revenue decline in 1H
however, has stated that she believes that August 16. Reserves of 31.3mn barrels of
Europe will no longer require Russian oil equivalent at the field were classified UK-based Nostrum Oil & Gas, which
gas, and therefore Ukrainian pipelines, as “contingent resources” as of December operates in Kazakhstan, has posted a 0.4%
in the medium term as Europe makes the 2020. y/y revenue decline in the first half of this
transition to a green economy.ghtly with no Nostrum said it had decided that the year to $92.3mn, despite higher oil prices.
significant improvement. disposal of its interest in the field was the Nevertheless, revenue in the second
most cost-effective option for the company quarter grew by 43% to $46.1mn from
going forward. $32.3mn. The company focused on keeping
EBRD becomes shareholder down costs in the first six months of the
year.
in Vestmoldtransgaz Russia's Gazprom to gasify narrowed to $34.4mn from $51.1mn. Sales
Nostrum’s pretax loss in the first half
The European Bank for Reconstruction Abkhazia within a years costs were 23% lower at $42.9mn from
and Development (EBRD) took a 25% $63.9mn. General and administrative
stake in gas transmission company Russian state energy giant Gazprom expenses and selling and transportation
Vestmoldtransgaz on August 25, said intends to gasify Abkhazia within a year, a expenses were 29% and 33% lower,
Vestmoldtransgaz owner Transgaz in a press move that will help address the Georgian respectively.
release published by the Bucharest Stock breakaway territory's severe energy crisis, "Despite all the uncertainties and
Exchange (BVB). the territory’s government has said. disruptions that Covid-19 and our
Vestmoldtransgaz owns and operates The press service of the de facto economy restructuring process continues to cause,
the Ungheni-Chisinau gas transmission ministry of Abkhazia reported that in the we are showing strong financial and
pipeline, built to deliver gas from Romania’s near future Abkhazia will receive from operational resilience," CEO Arfan Khan
border with Moldova to the Moldovan Gazprom a draft technical assignment, a said.
capital Chisinau, thereby reducing Moldova’s draft agreement and a draft roadmap. Russia
dependence on Russian gas imports. will finance the gasification project.
The EBRD became a shareholder after In July, the costs of the project were
fulfilling the conditions of subscription confirmed in the form of adjustments to

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