focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.

Less Ads, More Data, More Tools Register for FREE
Stephen Yiu, FM at WS Blue Whale, discusses Nvidia, Visa/Mastercard, Lam Research & Allied Materials
Stephen Yiu, FM at WS Blue Whale, discusses Nvidia, Visa/Mastercard, Lam Research & Allied MaterialsView Video
Ben Turney, CEO at Kavango Resources, explains the company's progress from exploration to mining
Ben Turney, CEO at Kavango Resources, explains the company's progress from exploration to miningView Video

Latest Share Chat

UPDATE 1-Ukraine gas bypass deal a "betrayal"-Slovak PM

Thu, 10th Sep 2015 13:19

* Deal "making idiots of us"-PM

* Ukraine could lose billions, Slovakia hundreds of millionseuros (Adds quotes, background, details)

By Tatiana Jancarikova

BRATISLAVA, Sept 10 (Reuters) - Slovak Prime Minister RobertFico on Thursday called a deal between Russia's Gazprom and its European partners to expand the Nordstream gaspipeline a "betrayal" that would cost Ukraine and Slovakia acombined billions of euros in transit fees.

Last week, Gazprom and its European partners signed ashareholders' agreement on the Nord Stream-2 gas pipelineproject that will bypass Ukraine and run beneath the Baltic Seato Europe, bringing Europe closer into Moscow's energy orbit.

Gazprom signed the deal with Germany's E.ON andBASF/Wintershall, Austria's OMV, ENGIE of France and Royal Dutch Shell. Itstipulates that new pipeline capacity from Russia will comeonline in 2019.

"Suddenly an announcement came from Gazprom signing acontact with companies from western EU member states aboutbuilding another branch of Nordstream. They are making idiots ofus," Fico said.

"For months, there have talks at the European Council aboutthe need to help Ukraine stay a gas transit country, to help itthrough difficult winter months," Fico told a joint newsconference with Ukrainian Prime Minister Arseny Yatseniuk.

"They have betrayed an EU member state - Slovakia - and aregoing against political discussions with Ukraine at the EuropeanCouncil."

Slovakia is the main entry point for Russian supplies tothe European Union via Ukraine but Russia -- which is embroiledin conflict with Kiev -- wants to find alternate routes.

Fico said doing so through the Nordstream expansion wouldcost Ukraine billions of euros in badly-need transit fees anddeprive Slovakia of hundreds of millions of euros in revenue.

"I will address this issue in this spirit at the Europeancouncil meeting," Fico said.

Russia provides for around a third of EU energy needs, butaround half of the gas the EU imports from Gazprom is shippedvia Ukraine, with which Russia is in conflict.

The Prime Minister also described Slovakia's decision lastyear to pump gas eastward to Ukraine ahead of winter a success,saying it was possible to further increase the annual capacityof 14.5 billion cubic metres.

He did not say by how much but cautioned that any decisionson future gas flow increases would be up to the EuropeanCommission and consider the need for any existing gas contracts.

"There are technical possibilities to further expand thecapacity," Fico said. "We understand Ukraine's needs concerninggas."

(Writing by Michael Kahn,; Editing by William Hardy)

Related Shares

More News
27 Oct 2022 07:30

Shell announces $4bn share buyback as Q3 profits beat expectations

(Sharecast News) - Oil giant Shell announced a $4bn share buyback on Thursday as it posted better-than-expected third-quarter profits.

21 Apr 2022 11:53

Shell turning to China to offload Russian business - report

(Sharecast News) - Shell is reportedly looking to China as it looks to offload its Russian business.

15 Feb 2022 15:54

Shell preparing to sell North Sea gas fields - report

(Sharecast News) - Shell is reportedly preparing to launch the sale of its stakes in two clusters of gas fields in the southern British North Sea, par...

7 Feb 2022 10:52

Berenberg nudges up target price on Shell

(Sharecast News) - Analysts at Berenberg slightly raised their target price on oil and gas giant Shell from 2,350.0p to 2,375.0p on Monday, stating th...

31 Jan 2022 10:53

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.