Ukraine expects revenue of 3 billion USD from Russian gas transit in 2017 - Finance and Markets

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Ukraine expects revenue of 3 billion USD from Russian gas transit in 2017. This might be a budget loss if Russia stops transiting gas to Europe through the country. The transit contract expires in 2019. Until then, Russia hopes to put into operation the Turkish Stream and the expansion of North Stream.
“The construction of the Black Sea pipeline will reduce transit revenue by half billion dollars”, said the head of Naftogaz, Andriy Kobolyev. “It is obvious for everyone that the first pipe of Turkish Stream will be a reality within a year”, added he.
Turkey’s first pipeline will supply natural gas directly to Turkish consumers, thus stopping transit through Ukraine and Bulgaria. At this stage, however, there is no solution yet for the second pipe of the pipeline, which will supply the European customers.
Kobolyev pointed out that Ukraine will lose about 0.5 billion USD per year from each pipe under this project. According to the plans the capacity of each pipe of the Turkish Stream to be 15.7 billion cbm per year.
The head of Naftogaz pointed out that Ukraine could keep transit of Russian gas after 2019, but transparent management of the transit network is needed and needs to attract the interest of European consumers.
Several weeks ago, Ukrainian President Petro Poroshenko proposed a change to the current gas pipeline scheme to Europe – consumers buying at the border between Ukraine and Russia, which means that Kiev will be the gas distribution center for the EU countries. At this stage, however, Moscow is not interested in such a proposal.