Page 40 - RusRPTAug24

So, having this experience, we are very careful, because what we have today is enough for us. We have a growing European market. As I said, eight plus one more country soon are among our consumers. We have a new great discovery at the field, which is called Absheron, which will produce 1.5 bcm this year and probably up to 5 bcm in the coming years. Next year, we will have gas production from the ACG gas field. So, we are not in need of anyone's gas. You probably know, due to certain reasons, the transportation of Turkmen gas to Azerbaijan through Iran has also stopped. So, we don't need it. But we've been approached by Ukraine and the European Commission. We are also in the process of negotiations with Russia on this matter. If we can help, we will.
But again, I just thank you for that question, because in order to avoid all kinds of accusations that we are doing something on speculative basis.
I just wanted to inform you. I think that it is possible to prolong this deal. Again, it will be good for Russia to have 50bn cubic meters or more to sell on the premium European market. We know that Russia is now looking for other markets, which is understandable. They have started supplying gas to Kazakhstan. They have started supplying gas to Uzbekistan, because these two countries had problems with their traditional supplier.
I know about some other ideas. Every country needs diversified supply routes. We have gas pipeline to Russia, Iran, Georgia, Turkey, to Italy, everywhere. We are on the safe side. Maybe I'm answering too long to your question, but it's important because it has different layers. Once again, we are ready to help. But understand that we are facilitators, nothing more.
2.15 Ukraine’s debts mounting
The G7 has committed to providing Ukraine with a $50bn loan, using interest accrued from $329bn in frozen Russian assets in Europe and the US, and it will repay the loan using the interest generated from the frozen assets. The G7 members will collectively contribute, with the US topping up the fund as needed to reach the $50bn target.
Ukraine's economy, estimated at $180-190bn, is significantly smaller than those of Russia and the United States, at about one-eleventh and one-hundredth the size, respectively. The $50bn loan represents approximately 27% of Ukraine's annual GDP. Since the war began, Ukraine has been borrowing heavily, with $58bn in 2022, $46bn in 2023, and a projected $52bn in 2024. This level of borrowing, amounting to 82% of GDP over three years and froze debt repayemnts in 2022 and has not realistic plan to repay this debt.
"Ukraine has become addicted to taking on debt and then refusing to make payments on that debt," according to Ian Proud in a blog looking at Ukraine’s debt.
The Ukrainian government faces a significant budget deficit, spending nearly double what it collects in revenue – this year estimated to be $43bn. The
40 RUSSIA Country Report August 2024 www.intellinews.com