KYIV, Jan 15 – Russia’s energy company Gazprom on Tuesday has failed to show up at negotiations with Ukrainian and European counterparts ahead of important natural gas supply talks next week, an official said.
The development shows lack of interest from Russia ahead of January 21 talks in Brussels to fully cooperate on resuming supplies to Ukraine and to keeping long-term gas transit contract.
"Their logic is simple,” Olena Zerkal, deputy foreign minister who is a member of the negotiating team, said in comments posted on Facebook. “Build Nord Stream 2 without waiting for final permissions, ignore their own partners.”
Ukraine has been hoping to reach an agreement with Russia to extend the contract on Russian gas transit to Europe after the current 109-year deal expires by end of 2019.
Naftogaz Ukrayiny, the national energy company, stands to lose more than $2 billion in annual earnings that Gazprom pays for shipping its gas to European markets if Russia directs all gas transit via Nord Stream 2 pipeline to Europe.
Ukraine has been trying to encourage Gazprom to sign the agreement.
Last week a Naftogaz official suggested that Naftogaz may be able to dismiss its $12 billion lawsuit against Gazprom if the Russian gas company agrees to extend the transit contract beyond 2019.
Naftogaz sued Gazprom in June to force the Russian company pay higher tariffs for gas shipments via its gas pipeline system in 2018-2019.
The lawsuit was filed with the Stockholm court of arbitration and is estimated by Naftogaz at $11.6 billion without adding interest rate charges.
Naftogaz asked Gazprom in March to review the gas transit tariffs in line with the European practices, but the Russian company had flatly refused, triggering the latest lawsuit.
The new lawsuit seeks to establish the higher gas transit tariffs for Gazprom for the period of March and through the end of 2019.
The US ambassador to Berlin, Richard Grenell, warned German companies of sanctions for their continued work on Russia-backed Nord Stream 2 pipeline, Deutsche Welle reported.
Grenell pointed out "a significant risk of sanctions" if the companies did not pull out of the project, Germany's Bild am Sonntag has reported. (tl/om/ez)
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