Alexey Miller's column
“The relevancy and the benefits of South Stream for Europe are undisputed. The South Stream project is aimed at enhancing the energy security of European consumers, which has always been Gazprom’s top priority. In addition, it should be noted that Gazprom and OMV have a sound international legal basis for implementing this project, which is the agreement signed by the Russian and Austrian Governments in April 2010.”
“Only South Stream may offer now extra guarantees of energy security to Europe.”
“Gazprom has opened a new stage in the development of the Russian oil industry. The first oil produced in the Russian Arctic shelf, the first oil from the Prirazlomnoye field was loaded into the oil vessel to be delivered to consumers. From this moment the return on the investments in Prirazlomnoye will start.
Today's event is highly important for strengthening Russia's position in the global oil market. We increased the flexibility and reliability of oil supply to almost any part of the world.”
“Gazprom’s development prospects as one of the leaders of the global energy industry largely depend on improving the hydrocarbon processing procedure, i.e. enhancing the treatment extent and the output of higher value-added goods.”
“The acquisition of KyrgyzgazProm is a natural follow-up of our long-standing relations with Kyrgyz partners. Gazprom receives a direct access to Kyrgyzstan’s market, and the country has guarantees of reliable gas supplies as well as a sound investment in an extensive retrofit and upgrade of gas transmission and production capacities. Gazprom becomes a strategic investor in the Kyrgyz economy.”
“At this round of talks we approved all the project-related technical matters. We advanced in our talks on the gas price. The parties agreed that the contract would come into force before the end of 2014 and that the next round of talks would take place in Moscow in late April.”
“The valid gas supply contracts with Ukraine were signed in January 2009. These are – the contract for gas supply to Ukraine and the contract for gas transit through Ukraine to Europe, which both are the long-term contracts valid for 10 years. And the main thing is that they were drawn up and entered in accordance with the market principles. First, it covers pricing formula, market pricing and the ‘take-or-pay’ principal being general for the whole gas market, including the European one. On the one hand, it considers pricing risks; on the other hand, it considers risks related to gas volumes. So, pricing risks are the risks beard by a purchaser, and gas volume risks – by a supplier.”
Ukraine received 1.956 billion cubic meters of gas in March and so far no payments have come for these supplies. The indebtedness increased to over USD 2.2 billion. We hope that in the near future Ukraine will start settling its debts and paying for current supplies, thought we see that the situation is not improving, but only getting worse.
The signing of a directive annulling the beneficial customs duty on gas export to Ukraine means that in line with the existing contract for gas supply to Ukraine, dated 2009, the gas price will unconditionally go up and make up USD 485 per 1,000 cubic meters from April.