DiXi Group Alert: the protocol on Russian gas transit fixed compromises but raised additional questions
Government of Ukraine made public the protocol signed by representatives of the EU, Ukraine and Russia as well as companies of these countries (Gas Transmission System Operator of Ukraine LLC, NJSC “Naftogaz of Ukraine”, Gazprom PJSC).The document sets out the parties’ coordinated political agreement on the conditions of Russian gas transit through Ukraine from January 1, 2020. This arrangement is to be implemented by companies that need to enter into relevant agreements.Given the dynamics of future negotiations, DiXi Group think tank considers it reasonable to make the following recommendations
Transparency is one of the key prerequisites for effective economic and market development, open competition, fair pricing, and formulation of balanced policy and regulation. Better information openness is also a safeguard against corruption.
Political consensus is a shaky phenomenon, but beginning from December of last year the matter of sanctions against the Russian gas pipeline project became an exemplary implementation of bipartisan and bicameral consensus in the United States. So, what does the sanction “package” consist of now and what does it mean for Nord Stream 2?
Overall, the Energy Ministry’s proposal is essentially a step in the right direction, because it actually has the purpose of spending the greenhouse gas emission charge specifically on reducing emissions of those very greenhouse gases, thus performing a stimulating role in the transition to the “green” economy.
The government draft law states that the BATM conclusions approval procedure is set by the Cabinet of Ministers. The alternative draft law proposes to define the BATM conclusions approval procedure in a separate law of Ukraine...