In Ukraine, Naftogaz went bankrupt due to Nord Stream 2

If, after the launch of the Nord Stream 2 gas pipeline, gas transit through Ukraine stops, this could lead to the bankruptcy of Naftogaz, ex-Minister of Economy of Ukraine Volodymyr Lanovoy admitted in a conversation with the Radiotochka NSN Telegram channel.

The loss of the transit function will lead to losses for the country, he said. “Our gas transmission system (GTS) is not separate from the subject of the economy. The entity is Naftogaz of Ukraine, which includes various functions – production, transportation, distribution, sales, debt relations, and so on. Therefore, this company will go bankrupt, because this transport network needs to be maintained, repaired, paid salaries, paid for electricity, and these costs will not be covered, ”the former minister said.

Under the terms of the agreement on the construction of Nord Stream 2, which Germany and the United States reached in July, Russian gas supplies through the territory of Ukraine should continue after the launch of the new gas pipeline. In particular, it follows from the agreements that Berlin undertakes an obligation to control the continuation of transit and thereby ensure the energy security of Ukraine. Under the current rules, Naftogaz Ukrainy acts as an intermediary in the supply of gas by Gazprom to the Operator of the Ukrainian gas transmission system.

Russian President Vladimir Putin in August promised the German Chancellor to keep transit after 2024, when the current contract expires. However, in September, Ukrainian Energy Minister German Galushchenko said that the country is ready to make a decision on its own to completely reorient its GTS to domestic needs – in the event that supplies along the Ukrainian route after the launch of Nord Stream 2 turn out to be too low.

On September 15, the head of Naftogaz of Ukraine, Yuriy Vitrenko, stressed that Kiev was ready to extend the contract for gas transit with Gazprom while maintaining the volume of purchases by companies in the EU. Kiev seeks to obtain guarantees that transit through Ukraine will be preserved.

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