(Rubric “Point of view”)

Olga Belkova

Ukraine resolutely opposes any energy projections that threaten the security of the state, violate EU norms or undermine Europe’s energy architecture. The operator of the gas transmission system of Ukraine learns that the joint-stock company Nord Stream-2 has submitted documents for obtaining permits to the German energy regulator (BNetzA). ГТСОУ had to demand taking into account the risks that the launch of Nord Stream-2 has become for the security of Ukraine.

Moscow spent more than years against Ukrainian sovereignty before the war began seven years ago. This company has passed on political and economic pressure. Energy often played a key role in it. Russia then sent its aggression, buying Crimea and intervening in the war in Luhansk and Donetsk regions. Gas transit remains our strongest non-military barrier from further escalation. Not to betray you, it is important for a country where there is a war.

Due to hostilities, Ukraine has already lost access to two points of interstate connection on the Russian-Ukrainian border. What will happen to the line of demarcation if Moscow’s gas supplies to the EU no longer depend on Ukraine’s gas transportation system? How significant are the risks of escalation in such a way that transit through Ukraine will no longer lead to the passage of houses in Europe? IN ОГТСУ we take these issues very seriously.

Launch of Nord Stream-2 can lead to gas shortage on the Ukrainian market. This is the second threat. If this pipeline is put into operation under Gazprom’s control and without third-party access to it, gas supplies through Ukraine will be completely cut off or, at best, greatly reduced. There is no doubt about that.

In addition, the Russian Federation has repeatedly used Gazprom’s exports to blackmail Ukraine. Granting Nord Stream-2 the status of Nord Stream-2 operator will have a particular impact on the operation of the OGTSU fulfilling its supply obligations. Because of this, the Kremlin can use energy to blackmail Ukraine, Moldova and other neighboring countries.

Immediately after the international transit, five Ukrainian cities on the Ukrainian-Russian border will run out of gas. According to our estimates, in general, the gas deficit in Ukraine may reach 20% during peak demand. Currently, Ukraine has one point for guaranteed gas imports from the EU.

We are a state-owned enterprise, so in fact the third problem. 80% of OGTSU revenues come from international activities that remain in the domestic market. The launch of Nord Stream 2 jeopardizes our work to operate and maintain the infrastructure in its current state. Without transit, strengthening the infrastructure of Ukraine’s GTS will fall on the shoulders of Ukrainian consumers, which will inevitably affect tariffs. Therefore, this topic is of great political importance.

Lack of information on gas volume and guaranteed continuity of transit will force to optimize and significantly reduce the GTS. Forcing consumers to pay for a broken infrastructure is an unfair and unrealistic plan. The GT section needs to be re-equipped so that gas can move from west to east and Ukraine can import gas from Europe. Direct access to the Central European gas hub in Baumgarten, Austria, is critical to import diversification.

Reducing the transit capacity of the Ukrainian GTS to limit or exclude the transportation of hydrogen or other renewable gases from Ukraine to Europe. Because of this, Ukraine may lose the chance to join the European movement for decarbonisation, which opens up to the country’s economic prospects. The pipeline will not wait for a full-fledged replacement of natural gas with hydrogen. The operation of the GTS and preparation for hydrogen transportation depends on gas transit over the next 10-20 years.

I used to be a People’s Deputy of Ukraine, I am proud of how much we have already achieved in a short period of time on the front of energy reform. Our gas transportation services have been completely decoupled from production and trade, and Ukraine now fully complies with European gas legislation.

in addition, when Ukraine and its underground storage facilities join the European gas market, in addition, the gas-producing country and security of gas supply for all EU members. Ukraine has done this to earn the good reputation it now enjoys as a reliable partner in the rich energy sector.

Russia, meanwhile, has considered its readiness to use energy as a geopolitical weapon. Any exceptions for the Nord Stream-2 joint-stock company in the certification process will only encourage Gazprom and at the same time weaken the energy security of Ukraine and the rest of Europe. Undoubtedly, OGTSU has an opportunity in the certification of JSC “Nord Stream-2”. The Polish state energy company PGNiG has been accepted for the certification procedure. We believe that Ukraine is also involved in this process.

Olga Belkova – director on interaction with government agencies and international organizations of the GTS of Ukraine Operator, former People’s Deputy of Ukraine (2012-2020).

The views expressed in the section “Point of view” convey the views of the authors themselves and do not fully reflect the position of Radio Liberty

Reprint carried out with the permission of the “Atlantic Council” of the United States