Four years ago, on November 16, 2012, Ukraine’s Minister of Energy Yurii Boiko announced on Inter TV plans to reduce Ukraine’s dependence on Russian natural gas supplies, and even suggested the possibility that Russia would take Ukraine to the international court.
“We know there will be arguments, even court battles with our Russian colleagues,” he said, but Ukraine intends to defend its national interests.
Ukraine was purchasing 26 billion cubic meters (bcm) of Russian gas in 2012, which was a 1.5 bcm drop from the contracted amount for that year.
Vadim Chuprun, deputy chairman of Naftohaz Ukrayiny, was cited by Russian business newspaper Vzglyad on November 17 as saying Ukraine would cut gas imports from Gazprom further, with a projected purchase of 20 bcm for 2013. At the time, Ukraine was paying $430 per thousand cubic meters in the fourth quarter of 2012. Mr. Chuprun noted that Ukraine would be purchasing some 5 bcm of gas from Europe in 2013.
Mr. Boiko explained that Ukraine had a deal to buy gas from Germany, via RWE, at a price that was $40 to $70 cheaper per thousand cubic meters than Russia’s price and during summer Ukraine could save up to $100 per thousand cubic meters. He added that shipments via Germany and Hungary would begin on January 1, 2013.
Other partners Ukraine was exploring, Mr. Boiko said, included Azerbaijan’s Shah Deniz project and Ukraine’s underground storage facilities and pipeline network. Shipments via Turkey would make their way across the Black Sea to Ukraine and on to Europe. Mr. Boiko added that the project was supported by both Turkey and Azerbaijan.
However, other partners in the Shah Deniz project – including BP and Norway’s Statoil (both with a 25.5 percent stake), as well as the Russian-Italian joint venture LukAgip with a 10 percent stake – had not indicated support for Mr. Boiko’s plan.
Source: “Ukraine reduces Russian gas imports,” RFE/RL, The Ukrainian Weekly, November 25, 2012.