FX.co ★ Europe denies gas transit to Ukraine

Despite fulfilling all the conditions and requirements determined by the European Energy Community, Ukraine was denied the gas transit through Europe. The country’s Vice Prime Minister Yuriy Boyko said that Ukraine expected more from its Energy Community membership. “We obeyed so many rules, but we did not get any solutions to the problems or support from the Energy Community.”
According to the Third Energy Package, all members of the Community must allow the transit of the European gas. But it only was allowed by Hungary. The other three countries refused to do it referring to some technical problems. In fact, several EU members, evading the energy law, just blocked the gas transit from Europe to Ukraine.
Previously, President of Ukraine Victor Yanukovych severely criticized the Energy Community for not giving any support in the important issues. The main problem is Ukraine’s dependence on the Russian gas and its cost. All that constitutes a menace to the economic situation in Ukraine. Reducing consumption, increasing domestic production and using alternatives instead of natural gas fail to solve these challenges.
In accordance with the contract, Ukraine started importing the European gas at the end of last year within the agreement on supplying 5 bln cubic meters of gas by the German company RWE Supply&Trading. In March, Ukraine’s Prime Minister Mikola Azarov reported first gas supply through Hungary to the President.
The gas transit operations across the territory of Ukraine are led by “Ukrtransgaz” which is a subsidiary of "Naftogaz of Ukraine". This company maintains 37,100 km of the major gas lines and branch pipelines.