Ukraine, Poland Eye Gazprom Anti-Trust Challenge

Russian export monopoly Gazprom has objected to the introduction of European Union capacity rules applying to the link between the Ukrainian and Polish gas transmission systems, state Naftogaz Ukrainy said March 7. It is apparently arguing that its contract terms take precedence over later rules.

The transit contract between Naftogaz and Gazprom means that the gas is transferred directly to Gazprom at the exit point into Poland. But Naftogaz says a contract between two market players cannot be an obstacle to the implementation of the European legislation at Ukraine-Poland interconnection points, based on the Regulation (EC) 2015/703 of April 30, 2015.

Gazprom's objection came during the consultation that was being held by Ukrtransgaz and Polish Gaz-System for market players on access to the Hermanowice-Drozdovychi interconnection point. The TSO co-operation principles embedded in the agreement are fully in line with current European rules, including Regulation (EC) 2015/703 on the network code, co-operation and information sharing rules, said Naftogaz, which owns Ukrtransgaz.

The two pipeline operators now intend to apply to their respective national regulators and anti-trust agencies "in order to clarify further actions and initiate an investigation into potential threats and barriers to competition on the gas markets of Ukraine and Poland arising from Gazprom’s actions."

The gas transmitted through the Ukrainian territory is transferred at the borders to Gazprom Export instead of the relevant eastern European TSOs. This model makes direct co-operation between Ukrtransgaz and European operators impossible.

(Credit: Naftogaz Ukrainy)

In 2014 and 2015, Ukrtransgaz signed direct co-operation agreements with Slovak, Polish and Hungarian TSOs on several new routes, which are used for gas import to Ukraine: Budince GMS (Slovakia), Hermanowice gas metering station (Poland) and Beregdaroc (Hungary). Because of Gazprom’s position, Ukrtransgaz cannot sign or implement similar direct agreements on other interconnection points.

Willliam Powell