Sefčovič’s Work Growing More Difficult Despite Optimistic Kobolev’s Declarations
While working to stabilise the situation in the Mediterranean, European Commission is also called to find a way out of the tensions between Ukraine, Russia and the European Union.
European Commissioner Maroš Sefčovič is set to meet with Russian Energy Minister Alexander Novak and Gazprom CEO Alexey Miller in Vienna on Friday. There is really little information about the possible outcome of the gathering, and a lot of fuss around it.
In a matter of days, Italy could overcome Ukraine in terms of gas stored in its facilities. That would be an unprecedented event in recent history. According to GSE data, Germany stored 15,514.32 mcm of gas, Ukraine 14,880.82, and Italy 14,736.93. Kiev really needs more gas in the coming weeks to avoid serious blackouts over the next winter.
It comes as no surprise that Naftogaz CEO Andriy Kobolev said on Friday that he hopes to sign a new gas agreement with the Russian company by the end of the month.
"We are fairly optimistic that we will be able to receive financing, top up underground gas storage facilities and we will have a comfortable level of inventories in order to make it through the winter," Kobolev said on Friday.
The parties are discussing a new “winter package”, which would follow the one agreed in September 2014 in Berlin and expired in June after a renewal. The trilateral talks have been postponed several times over the last five months. Seemingly, volumes and prices are the bones of contention. Clearly, delays are also part of a wider geopolitical strategy from the three players involved.
Last year’s negotiations were more hyped, this year’s talks are more secretive.
On Thursday, Naftogaz CEO Kobolyev basically reiterated what Former Czech Prime Minister Mirek Topolanek recently told Natural Gas Europe: building a second line of the natural gas pipeline Nord Stream is an option carrying along threats for Europe.
Meanwhile, the EU mobilised an assistance package worth €235.7 million to foster socio-economic development in the Southern Neighbourhood ‘partner’ countries.
“This investment will further support institution-building and the protection of citizen’s rights, while also tackling major regional challenges such as migration and the integration of civil society in political dialogue. This substantial funding is, yet again, clear proof of the EU’s continued commitment to support our partner countries’ efforts in increasing economic opportunities and improving the living standards of citizens and vulnerable groups” Johannes Hahn, Commissioner for European Neighbourhood Policy and Enlargement Negotiations, commented in a note.