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Ukraine is working behind the scenes to persuade Western allies to shift Russia’s shipments of pure gasoline from the Nord Stream 1 pipeline to Ukraine’s pipeline, growing Kyiv’s leverage in its battle with Russia, vitality officers informed Reuters.
Doing so, they stated, would power Russia to maneuver extra of its Europe-bound gasoline by way of Ukraine. That will make Moscow pay extra transit charges that would assist Ukraine’s wartime protection and deter Russia from damaging Ukraine’s gasoline pipelines within the meantime, they informed lawmakers and Biden administration officers in Washington final week.
Representatives from Ukraine’s gasoline pipeline operator and gasoline agency Naftogaz spent every week in Washington assembly administration officers and congressional lawmakers to induce them to persuade Germany and different European allies to undertake the plan.
Russia “depends upon us transporting gasoline from Russia to Europe. That is one thing to leverage in our discussions with them and Europe will help,” stated Olga Bielkova, director of worldwide affairs for the Gasoline Transit System Operator of Ukraine, in an interview in Washington.
A White Home official and Germany’s financial system ministry declined to remark. On Wednesday, Germany stated it is going to cease importing oil by the tip of this yr “after which gasoline will observe,” however didn’t specify when.
Germany has already halted Russia’s Nord Stream 2 gasoline challenge, which was designed to double gasoline shipments into Germany, as punishment for Russia’s February invasion of Ukraine. The $11 billion challenge completed building late final yr however by no means began.
Diverting shipments from the prevailing Nord Stream 1 pipeline is perhaps a troublesome promote for Germany and the remainder of Europe, analysts stated.
Doing so “does nothing to extend safety of provide to Europe,” stated David Goldwyn, a former State Division particular envoy.
The transfer may additionally increase some authorized risks. Christian Egenhofer of the Brussels-based Centre for European Coverage Research stated EU motion in opposition to Russian imports may characterize an unlawful breach of provide contracts.
Russia at present strikes 55 billion cubic meters of pure gasoline per yr to Germany on Nord Stream 1. It strikes one other 40 bcm to Europe by way of Ukraine’s gasoline transport system and pays transit charges to Ukraine in U.S. {dollars}.
Ukraine’s pipeline system has spare capability of greater than 100 bcm and will simply take up the Nord Stream 1 circulation.
Daniel Vajdich, an adviser to Naftogaz, stated shifting all of Nord Stream 1 to the Ukraine system “would supply Kyiv with extra leverage over Moscow and present the Kremlin that Europe is tying its personal safety to that of Ukraine.”
The officers proposed that 40% of Nord Stream 1’s capability be redirected to the Ukrainian pipeline instantly, step by step growing to 100% by April 2023. That will give EU states time to construct up winter stockpiles and diversify.
The officers stated in addition they sought U.S. help for Ukraine to realize entry to provide from LNG terminals in Turkey.
Svitlana Zalischuk, adviser to the CEO of Naftogaz, stated Ukraine quickly must safe its personal provide of gasoline earlier than its winter heating season begins in October.
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