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Ukrainian MPs urge world to reject Russo-German Nord Stream 2

Ukrainian MPs urge world to reject Russo-German Nord Stream 2

nord stream 2
The Ukrainian People’s Deputies on April 5, addressed the international community asking to stop construction of the Nord Stream 2 gas pipeline, intended to carry Russian gas to Germany, bypassing Ukraine. The MPs said that the European Commission (EC) should consult with Ukraine on the matter, in line with the European Union–Ukraine Association, Free Trade Agreement (FTA) and the European Energy Community treaty. Ukrainian deputies also urged Western countries to expand anti-Russian sanctions for its armed aggression in Ukraine to additionally cover Gazprom and affiliated persons, and to take measures to cut the influence of Russian firms on international markets. Nord Stream 2 would lead to establishing a Russian monopoly on the European gas market and eventually destabilize Europe, the lawmakers warned as UNIAN reported. This was stated by the Jamestown Foundation.
Kyiv’s concern was partially addressed last week on April 6 by the United States, which added Gazprom chief Alexei Miller to its list of sanctioned Russian officials, in line with the Countering America’s Adversaries Through Sanctions Act (CAATSA). Also, in mid-March, 39 US senators called on the Department of Treasury and the Department of State to apply sanctions on Nord Stream 2. But Ukraine clearly wants the West to toughen its response to Gazprom in particular.
Officials in Kyiv fear that with the launch of Nord Stream 2 in the north and another pipeline, Turk Stream, which will circumvent Ukraine in the south, Ukraine’s own gas pipelines could dry up. This would make it more difficult to secure gas imports: much of the gas Ukraine has been buying from the EU since 2015, when gas purchases from Gazprom were stopped, comes from intermediaries re-selling to Ukraine Gazprom’s gas flowing to Europe via Ukraine’s own pipelines. Also, a significant cut to Russian gas flows would deprive the national oil and gas company Naftogaz Ukrainy of the bulk of its profit. Gas transportation and distribution accounted for more than 90 percent of Naftogaz’s profit in January–September 2017, which the Ukrainian energy company attributed to both growing transit to the EU and the national currency devaluation (Naftogaz.com, December 19, 2017).

Naftogaz CEO Andry Kobolev estimates his company’s revenue from gas transit at $2–3 billion per annum. That is roughly 2.5 percent of Ukraine’s overall GDP. Losing that after the expiry of the current ten-year gas transit contract with Gazprom after 2019 would be a “critically negative factor,” he told a conference last October (UNIAN, October 24). Russian President Vladimir Putin said in Turkey, on April 3, that the Turk Stream project was being implemented successfully and that it would eventually bring Russian gas to Southeastern European countries, if they expressed interest .
Meanwhile, Miller stated that Gazprom’s gas transit via Ukraine would fall to 10–15 billion cubic meters (bcm) per annum after the contract expiry and with the launch of both Turk Stream and Nord Stream Two—down from 93 bcm of gas pumped through Ukraine last year. He also said Gazprom intended to negotiate the future of gas transit with Ukraine, but not on the conditions spelled out in the recent Stockholm arbitration court ruling.

As it was reported earlier, Ukrainian President Petro Poroshenko said Germany could benefit much more from gas supplies through Ukraine than from building Nord Stream-2, which is economically inefficient. 
n particular, Poroshenko warned Germany against further construction of Nord Stream-2 pipeline, calling it 'purely political project funded by Russia'.
'Excuse my acridity, but Nord Stream II is a political bribe, given for the loyalty to Russia,' he said.   
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