Derailing Russia-Ukraine gas transit talks would harm the EU consumer

(EurActiv, 18 Dec 2019) US Sanctions on Nord Stream 2– especially since their imposition is officially supported by the management of Ukraine’s Naftogaz – could complicate if not completely derail the negotiation process between Moscow and Kyiv on the future of gas transit, writes Danila Bochkarev.

Danila Bochkarev is a Senior Fellow, EastWest Institute (Brussels). The opinions expressed in this article solely reflect the views of the author, not of his organisation.

Gas transit negotiations between Russia and Ukraine advance despite difficulties. After the talks held in Paris on 9 December, President Volodymyr Zelenskiy confirmed that the issue of gas transit had been “unblocked”.

US Sanctions – especially since their imposition is officially supported by Naftogaz management – could, however, complicate if not completely derail the negotiation process.

Calling for the sanctions on their competitors is also hardly compatible with the market-based behaviour of a European energy company.

In an interview with NBC News, Andriy Kobolev, CEO of Naftogaz, said that “if [the sanctions] are signed and implemented, I believe the European gas market will benefit significantly, and Ukraine will benefit. And European consumers will benefit.”

Mr Kobolev referred to the “Protecting Europe’s Energy Security Act” (PEESA) which claims to be aimed at defending the European Union’s (EU) energy security by placing sanctions on European companies constructing the Nord Stream 2 gas pipeline.

External link

EurActiv, 18 Dec 2019: Derailing Russia-Ukraine gas transit talks would harm the EU consumer