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08/12/2016

Slovak PM calls Nord Stream expansion deal ‘a betrayal’

Energy

Slovak PM calls Nord Stream expansion deal ‘a betrayal’

Robert Fico called journalists "prostitutes".

[European Council]

Slovak Prime Minister Robert Fico said today (10 September) that a deal between Russia’s Gazprom and its European partners to expand the Nord Stream gas pipeline was a “betrayal” that would cost Ukraine and Slovakia a combined billions of euros.

Last week, Gazprom and its European partners signed a shareholders’ agreement on the Nord Stream-2 gas pipeline project that will bypass Ukraine and run beneath the Baltic Sea to Europe, bringing Europe closer into Moscow’s energy orbit, a move criticized by the US energy envoy.

Gazprom, E.ON, BASF/Wintershall, OMV, ENGIE and Royal Dutch Shell formed the new consortium for the project.

>>Read: Germany helps Russia bypass Ukraine via ‘Nord Stream 2’

“For months, there have (been) talks at the European Council about the need to help Ukraine stay a gas transit country, to help it through difficult winter months,” Fico told a joint news conference with Ukrainian Prime Minister Arseny Yatseniuk.

‘They are making idiots of us’

“Suddenly an announcement came from Gazprom signing a contact with companies from western EU member states about building another branch of Nord Stream. The are making idiots of us.”

“They have betrayed an EU member state – Slovakia – and are going against political discussions with Ukraine at the European Council”, Fico said.

Slovakia provides reserve gas flows to Ukraine to help the country decrease its dependence from Gazprom. Russia has called the practice “illegal”.

>>Read: Slovakia agrees to reverse gas to Ukraine

>>Read: Russia tells West reverse gas flows are ‘illegal’

Polish President Andrzej Duda too has made strong statements against the deal between Gazprom and the Western firms, to build a second gas pipeline under the Baltic Sea, saying it ignores Polish interests.

>>Read: Duda slams Russia’s second Baltic gas pipeline to Germany

Russia provides for around a third of EU energy needs, but around half of the gas the EU imports from Gazprom is shipped via Ukraine, with which Russia is in conflict. It wants to find new ways to deliver gas to Europe bypassing its neighbour.

Positions

Ukrainian Prime Minister Arseniy Yatsenyuk on 10 September criticised as "anti-Ukrainian and anti-European" a deal between Russia's energy giant Gazprom and several Western firms to build a second gas pipeline under the Baltic Sea.

"When the first Nord Stream was built, it brought the European Union no additional energy independence," Yatsenyuk said after talks with Slovak counterpart Robert Fico in Bratislava.
"The construction of Nord Stream-2 is affecting the security of the continuous gas supply of the EU's southeastern countries. It is a monopolisation of gas supply routes to the EU," he told reporters.
"This project is anti-Ukrainian and anti-European," Yatsenyuk said.

Background

Nord Stream was inaugurated on 8 November 2011, in the presence of then-President Dimitry Medvedev, and Chancellor Angela Merkel.

>> Read: Russian, EU leaders inaugurate Nord Stream pipeline

Led by Gazprom, which has put the cost of the plan at up to €9.9 billion and maybe less due to savings, the Nord Stream group is to build a third and fourth pipeline to transport up to 55 billion additional cubic meters of gas a year (bcm/y).

It would double the capacity of lines 1 and 2, which take the same route. The new pipelines are due to start transporting gas by the end of 2019.