Polish Briefing 17 August, 2018 9:00 am   
Editorial staff

Polish Briefing: Gazprom is still delivering gas to the Donbass

What goes on in Poland on the 17th of August.

Gazprom is still delivering gas to the Donbass

In the first half of 2018, Gazprom delivered 1,534 billion cubic meters to uncontrolled territories in the Donbass region of Kiev. gas – according to a report by the Russian monopolist.

For comparison, in the same period last year the company delivered 1,389 billion cubic meters occupied by pro-Russian separatists. According to Gazprom, in 2017, it delivered a total of 2,427 billion cubic meters of fuel to the Donbas, for which it expected 1,3 billion dollars from Naftogaz.

At the end of December, the arbitral tribunal in Stockholm explicitly ruled that the Ukrainian company should not pay for supplies to the occupied territories. At the end of February Gazprom stopped providing Naftogaz with bills for sent fuel volumes. Earlier, the Russians considered unpaid deliveries to the Donbas for the “debt of the Ukrainian company”, regardless of the fact that Naftogaz did not order or take away this fuel. Gas supplies through the measuring stations on the border with the occupied Luhansk and Oder region Naftogaz recognized as a breach of contract conditions by Gazprom.

US sanctions will not stop the sale of Russian oil

At the beginning of August, the American Congress received a bill containing a whole package of anti-Russian activities, including sanctions related to, inter alia, financial settlements with Russian state banks. According to experts, the wording relating to state-owned banks is so vague that it may lead to a ban on transaction settlement in dollars, which would be very painful for both Russian financial institutions and directly for the ruble exchange rate.

Another issue is the fact that the draft of this law may be changed many times or will not be accepted at all. Even the most severe US sanctions, which will limit dollar transfers to and from Russian state-owned banks, will not prevent Russian exporters from selling oil on international markets. The Kremlin has announced retorts related to actions taken by Washington.