Medvedchuk on termination of gas transit contract with Russia: government does not understand what it is

Viktor Medvedchuk noted that Ukraine could lose about 3 billion dollars of income to the budget

The Chairman of Political Council of Opposition Platform – For Life Party and MP Viktor Medvedchuk doubts that the government can save the situation with the gas transit contract when it does not understand what it is all about. He stated this on air of 112 Ukraine channel.

“Over the past 3-4 years, I have repeatedly told Mr. Poroshenko at meetings that it was necessary to decide on the fate of gas transportation system and gas transit, which adds about 3 billion dollars annually to the budget. And the closer came January 1, 2020, when the gas supply and transit agreement between Russia and Ukraine ends, the more urgent this problem became. Therefore, of course, it had to be resolved earlier, it had to be done by Poroshenko and had to be done by Zelensky. It is strange that Honcharuk in his n the professional and amateur position fell so low that he finally noticed that gas transit is serious for Ukraine. It deserves some attention, although it is in fact a pleasing reaction of normal people and of experts in this field. Because it is too late to say about the necessity to do something at the end of October and the specialists understand what I’m talking about,” he said.

“The second question is that today Ukraine is trying to realize and fully obtain the right to operate all the powers of a member of the European Energy Community, which Ukraine has entered. It happened when Ukraine joined the third energy package, where it should provide its capacities, including transit as a lease for pumping gas, where it should join other regulatory acts of the European Energy Community. If this happens before the end of the year, this problem will be solved, but I just want to say that this problem will be solved but, first of all, in the interests of consumers and operators from EU countries” the MP said.

Medvedchuk emphasized that if this situation develops this way, it is unprofitable for Ukraine, because we will definitely lose that amount of funds, about 3 billion dollars of income to the budget.

“Because we could keep this money only if we would either extend the contract today with certain obligations on the volume and pumping gas to Europe, or go along with creating a gas transportation consortium. We have been emphasizing this in recent years, and we have especially focused the attention of our citizens, of our voters during 2019 on this. But, unfortunately, we did not reach the authorities, who behaved self-confidently and unprofessionally in this matter and only now they are trying to pay attention to it. Once again I say, firstly, it is too late. Secondly, today it is necessary to save the situation at the level of implementation methods, functioning of firefighting or ambulance services. I don’t know how to solve these problems, but it is a fact that difficulties await us,” Medvedchuk summed up.  

(c) 112

14 comments

  1. Ukraine will lose the $3 billion whether Ukraine signs a contract with Muscovy or not, once Nord Stream is up and running. Better losing $3 billion than signing a one sided agreement with your boss. Ukraine have been there before, and was blackmailed at regular intervals by Putin.

    • And why would any Ukrainian take advise from a Moskali that is meeting with Miller’s Azprom every other week for no reason? This ruSSki zit can barely claim to represent 10% of the country but thinks he’s president. Where’s my vodka?…..

  2. Off topic: I was offered a job in Montenegro. If the pay is ok, i will be posting from there starting summer next year. It’s always good to have connections in Nato. 😉

  3. Ukraine knows that its days are counted anyway as gas transit land thanks to the Ruskie mobsters and the cowardly krauts with their North Stream II. I think it’s right to end this unsavory relationship now rather than later. Let’s hope that gas prices in Europe will explode.

  4. First of all that 3 billion is going to be reduced. Turkish stream and Nord stream will insure that.
    Even if the transit contract is renewed Russia will violate it at their first convenience as they have repeatedly and ignore ALL forms of legal redress.
    So what should Ukraine do?
    Same thing they have been doing since Putin demonstrated his unreliability; reduce dependence on Russian transit and make their GTS more efficient.
    Other countries and contractors can use the Ukraine system besides Russia. Use all of the state’s diplomatic resources to market the system to all available customers.
    Cut the already excessive capacity of 120 BCM per year to around 80 BCM and use the savings to update the remaining.
    Reduce operating costs by the bloated cutting staff
    Review existing contracts to find more efficient providers.
    Once the system is operating more efficiently play hard ball and lower the transit fee and price Nord Stream out of the market. the GTS is already operating well below the average market price of the rest of europe.
    Work with Slovakia, Poland and Czech Republic to develop a unified pricing structure that will keep their transit systems competitive.
    Finally and most importantly make what ever changes are nessary to develop Ukraine’s domestic gas resources. It sdes not matter if you loose 3 billion in income if you reduce costs by 3 billion. (A penny saved IS IN FACT a penny earned.) this will also reduce Ukraine’s vulnerability to future meddling by Russia and her disingenuous actors like Medvedchuk.

What is your opinion?