The European Union has officially published its list of sectoral sanctions against Belarus.
In line with the decision of the EU Council, which was published in the EU’s official journal, the ban on import or transit from Belarus of highly significant export goods for the country, petroleum products and potash fertilizers, applies to contracts signed after June 25, 2021. The EU sanctions thus do not apply to current contracts for supplies of petroleum products and potash fertilizers.
“It shall be prohibited […] to transport petroleum products if they originate in Belarus, or are being exported from Belarus to any other country; to provide, directly or indirectly, technical assistance, brokering services, financing or financial assistance, including financial derivatives, as well as insurance and re-insurance […]. The prohibitions […] shall be without prejudice to the execution of contracts concluded before June 25, 2021, or ancillary contracts necessary for the execution of such contracts,” the document said.
Similar sanctions are envisaged for potash fertilizers from Belarus. “It shall be prohibited to import, purchase or transfer, directly or indirectly, potassium chloride (‘potash’) products […] from Belarus, whether or not originating in Belarus. The prohibitions […] shall be without prejudice to the execution of contracts concluded before June 25, 2021, or ancillary contracts necessary for the execution of such contracts,” it said.
BANS, BELARUS, EUROPEAN UNION, IMPORT, OIL PRODUCTS, TRANSIT
Ukraine should remain a transit country for Russian gas, and Berlin expects the transit agreement with Russia to be extended, the German government’s official representative, Steffen Seibert, told reporters on Monday in Berlin.
“It remains central for the German government that Ukraine remain a transit country even following the completion of construction on Nord Stream 2. There is a transit agreement,” Seibert said.
The representative said that the current transit agreement “is valid at least until 2024, though the agreement envisages that the parties will review the possibility of extending the agreement until 2034.”
“We expect the agreement to be extended,” Seibert said.
The Slovak Republic has always been a reliable transit country for Russian gas to the West through Ukraine, and it is interested in maintaining this transit through Ukraine, said Prime Minister of Slovakia Eduard Heger.
“As for the Nord Stream 2 Project, it is not in the hands of Slovakia to decide. Slovakia has always been a reliable transit country for the Russian gas to the West through the territory of Ukraine and we are definitely interested in keeping this gas transit through Ukraine. We believe the transit contract between Russia and Ukraine will be fulfilled further on,” Heger said in an exclusive interview with Interfax-Ukraine.
Consignors – which can only be Gazprom – have not been interested by offers of additional capacities for gas transportation through Ukraine for June from Gas Transmission System Operator of Ukraine (GTSOU).
Gazprom has a long-term reservation of Ukrainian capacities in the volume of 40 billion cubic meters for 2021, which is equal to 109 million cubic meters per day. The company additionally booked 15 mcm at auction on May 17, giving a total of 124 mcm per day.
GTSOU offered an additional 63.7 mcm per day at the monthly auction on Tuesday; however, there were no bids for this. The outcome of the last major additional auction a month ago was the same.
The announcement of this auction – with the prospect of significant supply growth on the European market – and its outcome have a substantial influence on spot prices for gas on the European market. They reduce under pressure of the appearance of potential new supply and rebound following an unsuccessful auction. Meanwhile, Gazprom prefers not to comment on its plans regarding short-term reservation of Ukrainian capacities.
Gazprom is currently pumping 124 mcm per day on average through Ukraine, fully using the volume booked.
If Gazprom had accepted the offer to use additional transit capacities, it would have meant a return to transportation volumes through Ukraine of 2019, before the new transit contract and payment of $3 billion to Naftogaz in line with a Stockholm arbitration ruling.
Europe is currently dramatically increasing gas consumption. Global supplies of liquefied natural gas and pipeline gas from Russia are at their highest levels, but this so far impedes the start of mass replenishment of gas in underground storage facilities to prepare for next winter.
Consignors – which can only be Gazprom – have not been interested by offers of additional capacities for gas transportation through Ukraine for May from Gas Transmission System Operator of Ukraine (GTSOU).
Gazprom has a long-term reservation of Ukrainian capacities in the volume of 40 billion cubic meters for 2021, which is equal to 109 million cubic meters per day. The company additionally booked 15 million cubic meters (mcm) at an auction on April 19, giving a total of 124 mcm per day.
GTSOU offered an additional 63.7 mcm per day at the monthly auction on Tuesday; however, there were no bids for this.
Gazprom is pumping 124 mcm per day on average through Ukraine in April, fully using the volume booked.
If Gazprom had accepted the offer to use additional transit capacities, it would have meant a return to transportation volumes through Ukraine of 2019, before the new transit contract and payment of $3 billion to Naftogaz in line with a Stockholm arbitration ruling.
Europe is currently dramatically increasing gas consumption. Global supplies of liquefied natural gas and pipeline gas from Russia are at their highest levels, but for now, this does not make it possible to start mass pumping of gas into underground storage facilities to prepare for next winter.
In January 2021, Gazprom transported 124.51 mcm per day on average through Ukraine, in February – 104 mcm, and in March – 119.5 mcm.
Transit of oil through the territory of Ukraine by pipelines to European countries and Belarus in January-March 2021 decreased by 14.2% (by 488,300 tonnes) compared to the same period in 2020, to 2.959 million tonnes, according to the data of JSC Ukrtransnafta.
In particular, transit in the direction of Budkovce (Slovakia) amounted to 1.986 million tonnes (less by 13.4% compared to January-March 2020), Fenyeslitke (Hungary) – 702,300 tonnes (less by 21.3%), Mozyr (Belarus) – 270,600 tonnes (more by 3.5%).
The volume of oil transportation to refineries of Ukraine in the first quarter of this year amounted to 526,000 tonnes, which is 11.2% (66,100 tonnes) less than in January-March 2020. In particular, oil transportation along the Odesa-Kremenchuk route amounted to 197,900 tonnes (less by 13.9%).
Thus, in 2020, the total transportation of oil through the company’s pipelines amounted to 3.485 million tonnes (less by 13.7%). The share of transit volume in it is 84.9%, pumping to the country’s refineries – 15.1%.
In March 2021, oil transit through Ukraine by pipelines fell by 35.3% (by 492,800 tonnes) compared to the same month in 2020, to 903,000 tonnes.
Pumping to Ukrainian refineries last month decreased by 0.5% (by 900 tonnes), to 195,400 tonnes.
Ukrtransnafta said among the factors that influenced the total volume of oil transportation in the first quarter of 2021 were a decrease in oil demand among European consumers due to quarantine measures and the withdrawal of an oil refinery in Hungary for scheduled repairs.
