New warning on Ukraine gas

Russia is warning Ukraine risks gas cuts after starting a fresh price war, with Kiev claiming that the existing deals with Gazprom don’t meet the EU’s Energy Charter to which it is a signatory.

The EU says the charter also makes parts of South Stream illegal, as other gas companies can’t use the pipeline. However, Alexander Medvedev, Deputy ChiefExecutive at Gazprom, says he will convince Brussels to back the project. “South Stream is really a pan-European project, its offshore part with Italians and French, its onshore part with Bulgarians, Serbians, Hungarians, and Austrians.And we’re sure that the interest of the European Community is to apply exclusion clauses for South Stream. Because if we add all the capacity of Nord Stream, South Stream, gasification terminals, Nabucco will still be a supply gap by 2020, 2030.”RT: Countries like Ukraine and Bulgaria have ripped out existing deals with Gazprom. You can’t be happy about that?“I also support such a view because we’re in a long-term business, and if anybody puts in danger our long-term commitments, who are these magic investors who could replace us?”RT: What do you hope to achieve when the top Chinese gas delegation flies to Moscow this week?“We should sign contracts in the middle of next year. Two days ago I met Mr Wang Dongjin, vice president of CNPC, we had a very constructive discussion on technical side, on commercial side, and the next round will take place in China in the middle of January. We’re on track.”