Berlin thinks it is important to continue Russian gas transit via Ukraine even after the launch of Nord Stream 2.
German Foreign Minister Heiko Maas said Germany is discussing the matter with both Washington and Kiev, TASS reports.
Maintaining the Ukrainian transit will likely be one of the operator’s concessions in order to reduce the risk of more US sanctions, according to AMarkets Analytics Director Artem Deev. It is not clear, however, how much gas Russia will still supply through Ukraine. Without its transit charges, Ukraine will lose the biggest part of its budget revenue.
Russia and Ukraine will have to sign a new contract. Ukraine will insist on a long term with a large guaranteed volume of supplies, like in the past.
“Russia would prefer a short-term contract or a series of contracts, signed after the launch of Nord Stream 2. That would allow Russia to adjust the final value of the contract in case of gas price fluctuations,” the analyst explains.
Heiko Maas was the first official to announce that it is Germany working out an agreement, as an intermediary between Russia and Ukraine in their transit deal. In addition to mitigating the risk of sanctions, the agreement is expected to secure against operational failures or hindrances by identifying an alternative transit service.