FX.co ★ No pipe, no gas!

Ukraine’s Environment and Natural Resources Minister Eduard Stavitsky is deeply convinced there is a need for trilateral talks on the issue of Russian gas transit through Ukraine. The solution must be hammered out by the EU, the consumer, Russia, the supplier, and Ukraine, the transit country. Moreover, he insists that Germany’s Chancellor Angela Merkel personally be engaged in the negotiations.
“This triangle should work,” Stavitsky said. “Angela Merkel (German Chancellor) is ready to act as mediator in these talks as Germany depends on gas supplies.” At the same time, the decision of the EU authorities to build the South Stream pipeline project to bypass Ukraine is severely criticized for, as Ukrainian President Viktor Yanukovych regards it as a blow to the national economy. Should the project be implemented, Ukraine will find itself deprived of 60 billion 50 and 60 billion cubic meters of gas supplies. At the break of November, in the run-up to the summit in Vilnius, Academician Sergey Glazyev, the Advisor to the Russian Federation President, said that negotiations to create a tripartite consortium to manage Ukraine's gas pipeline network are pointless until Ukraine enters into an agreement with the EU. Previously, Gazprom CEO Alexey Miller said there is no ground to continue these talks. Moreover, the Ukrainian authorities deliberately delayed considering legislation. Ukraine's energy minister meanwhile keeps repeating there was no pause in negotiations.
This is not the first year the gas transportation system of Ukraine is being widely discussed by the two neighboring countries. Gazprom once came up with an idea to provide Ukraine with 50% discount on the Russian natural gas in exchange for the opportunity to control the pipeline; however, no consensus was reached.