Ukraine Gas Boss Updates on Market Reform
Naftogaz Ukrainy is seeking to balance its gas portfolio and has therefore invited all companies that are interested to offer it gas and play by the rules, the CEO of the state monopoly Andriy Kobolev told the BBC Hard Talk presenter Shaun Ley. September 8.
“Our offering extends to all companies, including Gazprom, if it is ready to offer an acceptable price and observe the rules,” he said.
The new management thinks in terms of the market, and so it has addressed the question of how to buy gas effectively. "Now as many as 14 European companies are selling gas to Naftogaz. The fact that they work with us shows that Naftogaz is a reliable partner,” Kobolev stressed.
He counted among the company’s biggest success stories the clearing of the deficit and the struggle with corruption at all levels, starting at the top. Kobolev also added that corruption in gas purchasing would not have been possible without Russia, as intermediaries such as RosUkrEnergo existed with its consent.
Addressing the question of the authorities’ resistance to reform of the oil and gas sector, Kobolev said that despite differences of approach between cabinet members, the company enjoyed significant support from government. But the government itself was under pressure from different interest groups who were trying to delay reform at every level, especially in parliament, he said.
Naftogaz CEO on BBC (Credit: BBC)
Estimating the chances of victory over Gazprom in the Stockholm arbitration tribunal, Kobolev said that the statistics were on Naftogaz’s side although the risks were still significant. He said Gazprom often blackmailed its consumers but it had lost nearly all the legal cases. Gazprom is suing Naftogaz over alleged breach of a take-or-pay contract and Naftogaz is suing Gazprom over an alleged breach of a ship-or-pay contract.
Commenting on Gazprom's planned Nord Stream 2 line which would reduce still further the revenues Ukraine receives from transit, Kobolev said that it was not a commercial pipeline but a political project: another attempt by the Russian president, Vladimir Putin, to sow discord in Europe.
“The negative influence of ‘divide and conquer’ is felt not only in Ukraine but in central and eastern Europe,” he said. “First Russia divides European countries with different prices for gas and then it rewards those who cosy up to it with more advantageous prices in exchange for political concessions.”
He added that despite the different interests of European nations and the active lobbying by Gazprom, Ukraine sees Europe as a reliable partner.
William Powell