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Russia will stop gas transit through Poland

Russia will stop gas transit through Poland

Poland refused to renew the agreement with Russia on gas transit via the Yamal-Europe pipeline. At the end of the transaction, Gazprom is likely to reserve short-term transit capacities with Gaz-System, the operator of the Polish pipeline system. Poland, on the other hand, is beginning to accept deliveries through the pipeline from Norway and purchase liquefied natural gas delivered by ships, including from the United States.

The gas transit agreement between Russia and Poland, which expires at the end of this month, will not be extended, Reuters reports citing Gazprom.

The refusal to extend the document is explained by the fact that Warsaw brings its energy rules in line with European Union standards and limits its long-term dependence on the Russian energy carrier.

“In fact, the current gas contract has been terminated,” said Gazprom spokesman Sergei Kupriyanov.

He specified that gas would still pass through Poland, but did not go into details about whether the transit fee could increase. Poland has long complained that the fees are too low.

The transit deal between Poland and Russia, concluded in the 1990s, affects the Yamal-Europe transnational trunk export pipeline, through which Russian gas is transported from the northern Yamal Peninsula to Poland and then to Germany. Its annual capacity is 33 billion cubic meters.

At the end of the transaction, Gazprom is likely to reserve short-term transit capacities with Gaz-System, the operator of the Polish pipeline system.

Warsaw has repeatedly stated that it will not buy Russian gas after 2022 when another long-term deal ends.

Instead, Poland will accept pipelines from Norway and purchase liquefied natural gas delivered by ships, including from the United States.

However, Russia will gain access to large transit capacities for delivering gas to Europe after the completion of the construction of the Nord Stream 2 subsea pipeline along the Baltic Sea, which is expected to be commissioned early next year, although construction has been suspended due to US sanctions.

It became known on the eve that the Polish energy company PGNiG welcomes Germany’s refusal to release Nord Stream 2 from the EU gas directive.

As noted in the company's statement, PGNiG will analyze the decision of Berlin and its justification, and also plans to monitor the further progress of this case and possible appeals from SP - 2.

PGNiG Chairman of the Board Jerzy Kweczynski said Poland was satisfied with the FRG decision, which testifies to the strength of Polish arguments against excluding the Russian gas pipeline from the scope of the EU directive.

Germany refused to exempt SP-2 from the rules of the EU gas directive, according to which the producing company should not own the pipeline through which its gas is delivered.

The Federal Grid Agency of Germany notes that Nord Stream 2 AG was unable to complete the pipeline in time for the appointed date - May 23 last year. And this period was a necessary condition for removing the pipeline from the rules of the Gas Directive.

The updated EU Gas Directive, in particular, implies that after the construction of the pipe is completed, Gazprom will be able to use only 50% of its capacity. Alternative gas suppliers, independent of the main supplier, that is, Gazprom, may apply for the rest.

State Duma deputy Sergei Zheleznyak said in an interview with Rossiyskaya Gazeta that Germany’s decision on Nord Stream 2 demonstrated the independence of the German government.

According to the parliamentarian, Berlin showed obedience to the will of Washington, which repeatedly pressured the FRG, trying to force it to abandon the Russian gas pipeline.

The deputy noted that the actions of the German side cannot be called a partnership, as Germany is trying to shift all responsibility for what is happening to Russia.

At the same time, exactly one month ago, the head of the Bundestag Committee on Economics and Energy, Klaus Ernst, stated that Nord Stream 2 is important for European states and US sanctions imposed on it require a response.

Ernst said that SP-2 is important, among other things, because it will allow supplying additional volumes of gas to Europe. In his opinion, the American sanctions imposed on the companies involved in the implementation of this project are unacceptable and require a decisive reaction from Europe.

It is worth adding that when Russia completes the construction of the Nord Stream-2 gas pipeline, sanctions approved in December last year will automatically be imposed on Gazprom, the Atlantic Council writes referring to Texas Senator Ted Cruz.

According to the Republican, the US government has approved restrictive measures against the Russian gas pipeline, and if the Akademik Chersky pipe layer completes the string, then the head of the White House, Donald Trump, will be required to activate the sanctions.

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