Gas reverse is one of the most common economic and political concepts that is very common in publications and news. The phenomenon is not new and is often considered in the history of the countries of the post-Soviet space. Let's try to figure out what reverse gas means.
What is reverse?
The reverse of gas is a rather old phenomenon, the debate over which has been held since the presidency of Yanukovych. In economic practice, the phenomenon is associated with return gas supplies. In other words, after the buyer receives fuel from the seller, he redirects it in the opposite direction. If we consider the concept on the example of Ukraine, some features will be peculiar to it. This is due to the underdeveloped structure of gas pipelines, which distorts the structure of the fuel transfer itself. Simply put, the concept implies the sale of gas from a supplier, in the case of Ukraine - this is Russia, another country, at a better price. For example, Poland’s transfer of Russian gas to Ukraine is a reverse.
Distinctive characteristics of the Ukrainian reverse
Gas reverse to Ukraine has its own unique scheme and specifics. The territory of Ukraine is the road of Russia to Europe, since it is through its open spaces that gas has to be sent to the EU. When transporting fuel through the country, part of it remains at Neftegaz. In fact, a percentage of the volume of transported fuel (10% earlier) is usually called “reversed”. The specifics of the redirection of the gas flow within the state is that there is no separate, specially equipped pipeline for the return of gas to the country from Europe. The situation when Ukraine leaves part of its supplies to itself is conventionally called “reverse”. According to the documentation, the country receives gas reverse from Slovakia.
Let's get acquainted with the legal side of the issue
In connection with the specifics of the conditional “gas return” to Ukraine, it is worth paying attention to the existing contradictions. The legislation of Russia allows the supply of fuel from Europe only if there is a specially equipped pipeline (physical carrier). In fact, no pipe from Slovakia to Ukraine existed until 2014. According to the documents, gas becomes the property of the buyer only if he crosses a special checkpoint located on the border between Slovakia and Ukraine, as well as with other countries that are consumers of Russian “blue” fuel. If there is a pipe, reverse gas from Slovakia will not be legal for the reason that the official fuel supply agreement clearly and clearly states: “Neftegaz” in this situation acts exclusively as an operator. The media has repeatedly published publications with forecasts that the "gas transportation" from Slovakia will not take place. Already in early September 2014, the process was launched, and now continues to develop at a rapid pace.
The beginning of a successful collaboration
On August 16, 2014, testing of the pipeline began, which already supplies gas to Ukraine through the territory of Slovakia. The testing phase consisted of starting and checking the reliability of the system. Representatives of Slovenia have repeatedly expressed their concerns that the reversible pipe and equipment that will be used to transport the energy resource are pretty worn out. Last summer, due to the condition of the equipment, it was difficult for experts to calculate how much gas will be recycled from Slovakia. The Ukratransgaz company completed the full range of preparatory work at the Uzhgorod station on August 7th. All conditions were created for the European gas supply, in particular, a large number of technical issues were resolved.
Start of supply
Gas reverse from Slovakia was launched on September 1, 2014. The opening of the valve officially took place in the city of Velke Kapushany. It was attended by Prime Minister of Slovakia Robert Fico and Prime Minister of Ukraine Arseniy Yatsenyuk. Initially, the reverse was carried out in a test mode. Blue fuel was supplied to the country in the amount of 3 billion cubic meters. Already on September 2, the test mode was switched to commercial, and fruitful cooperation began. At that time, forecasts, and today reality, said that from March 1, 2015, more powerful deliveries would begin. The commissioning of the Vojany-Uzhgorod pipeline was successful. According to the country's prime minister, the opening of a new fuel supply channel has reduced the percentage of Ukraine’s dependence on Russia. About 40% of the state’s fuel requirements have been satisfied. In the future, it is planned to fully ensure energy security in Ukraine. Huge budget expenditures were reduced due to the fact that it was the European gas reversal that began to be implemented. The memorandum on reverse deliveries between Ukrtransgaz and Eustream was consolidated on April 28, 2014. Two reverse formats were specified:
- Small (no more than 2 million cubic meters of fuel per day).
- Large (at least 30 billion cubic meters of fuel per year).
Savings and more
Fuel savings in 2014 amounted to about $ 500 million. Today, the country uses reverse gas from countries such as Poland, Slovakia and Hungary. Russia is fundamentally committed to ensuring that gas is not reversed to Ukraine, as this will lead to a significant reduction in revenues. Drastic measures were also taken, in particular, the volume of deliveries from Russia to a number of European states was significantly reduced.
Sanctions on gas supplies from Russia
Russian Gazprom, in parallel with the formalization of partnerships between Ukraine and Slovakia, in 2014 began to actively reduce gas supplies. According to the Echo of Moscow publishing house, after the launch of the new pipeline, the volume of fuel supplied to Slovakia was reduced by 25%. Similar actions, but already in the direction of Hungary, led to the fact that the state lost one of the most powerful sources of fuel. After Russia reduced supplies to Poland, the country suspended the reverse for several days. In the midst of the crisis, in early autumn 2014, Moscow closed all channels for Ukraine. The state has established relations with a new partner in the person of Slovakia. Gas reverse to Ukraine is carried out in the promised format. After some time, Russia not only resumed the entire volume of deliveries to Europe through the territory of Ukraine, but also increased it by 7%, which made gas reverse possible. Gazprom remains the most powerful supplier of blue fuel.
Search for an alternative partnership scheme
Against the backdrop of negotiations and building new partnerships between Ukraine and Slovakia, Russia has offered a discount on direct gas supplies to Ukraine in the amount of $ 100 per cubic meter. At the same time, a proposal was made regarding the exact calculation of the volume of gas separately for the summer and winter periods, which would optimize costs from the state budget. A similar format of cooperation was rejected. Starting March 1, 2015, Slovakia will reverse gas to Ukraine, according to UNN, in the amount of at least 10, as expected at the first stage of the partnership, and 14.5 billion cubic meters per year. Due to the way gas is reversed today, Ukraine has blocked more than half of its fuel needs. The volume of deliveries to Ukraine due to the reverse today reaches 27 million cubic meters of fuel per day. Initially, the Vojany-Uzhgorod pipeline system could provide gas supplies of 10 billion cubic meters per year. Now the remaining 4 pipelines are working, providing bilateral exchange of fuel in the amount of 100 billion cubic meters. Over the past few years, an average of about 55 billion cubic meters of “blue” fuel was transported through the country's gas pipelines from Russia to Europe.