12:50 19.06.2017

European Commission should insist on application of third energy package to Nord Stream 2 - Naftogaz

The European Commission should use its mandate as a guardian of the interests of the European consumers and insist on the application of the Third Energy Package to the Nord Stream 2 project, national joint-stock company Naftogaz Ukrainy has said.

"The uniform application of the Third Energy Package and preserving the existing gas delivery routes provides an optimal solution for the European gas consumers based on transparency and free market principles," Naftogaz CEO Andriy Kobolev said.

Naftogaz said that Naftogaz is not requesting any concessions or exemptions from the European rules and strives to operate in the level playing field. Gazprom, on the contrary, rejects the application of the standard European rules to its Nord Stream 2 project and relies heavily on numerous carve outs from the Third Energy Package in its activities in Europe.

"Risks posed by the Nord Stream 2 to the public interest and the EU integrity outweigh potential commercial benefits for a narrow group of businesses. The Nord Stream 2 project undermines the solidarity in the EU and within the Energy Community. The project already jeopardizes the development of the Energy Union by antagonizing the member states," the company said.

Naftogaz is convinced that if built, the pipeline will destabilize existing secure gas delivery routes.

"It endangers Europe with price manipulations and additional costs, goes against the principle of efficient use of infrastructure, and leads to concentration of delivery routes under Russia's control, without providing access to any new sources or suppliers of energy," the company said.

The traditional land-based pipeline route running through Ukraine offers unmatched transmission capacity, reliability and flexibility to deliver gas to the EU under the European rules of business. The traditional route is also the most cost efficient way to deliver Russian gas to Central, Eastern and Southern Europe.

"Out of all options, it is the only delivery route of Russian gas which is fully unbundled from the Russian monopoly supplier. This infrastructure already exists; it is secure and well maintained. Unlike Gazprom, the Ukrainian operator discloses its data online at the ENTSO-G transparency platform and cooperates with the European Commission," the company said.

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