Economic conflicts over the supply of Russian gas to Ukraine, as well as gas transit through its territory to Europe, have arisen periodically since 1993. The essence of the disagreement over gas prices lies in the uncertain position of Ukraine in relation to Russia: whether it is a fraternal country that can be given certain privileges; whether it is an independent European state, and then gas prices should be calculated according to European standards.
Background to the conflict
After the collapse of the Soviet Union, the newly formed independent Ukraine, through whose territory the main gas pipeline from Russia to Europe passed, found itself at a crossroads: on the one hand, Ukraine became a separate state, free from external control, on the other hand, it was a fraternal country in the post-Soviet space. Hence, Ukraine has historically retained privileges for the purchase and transit of natural gas produced in Russia.
However, both Russia and Ukraine chose capitalism as the goal of their subsequent development. Therefore, the realities of the market economy gradually took their toll. Despite the significant discounts on the supplied natural gas, by 1995 Ukraine had accumulated a very large debt for it in the amount of 1 trillion rubles.
OJSC Gazprom announced the suspension of gas supplies to Ukraine, but proposed to solve the problem of the Ukrainian debt by transferring part of the property of the Ukrainian gas companies of gas pipelines.
On March 10, 1995, following the results of Russian-Ukrainian negotiations, a decision was made to continue gas supplies to Ukraine, provided that the Ukrainian side provides a schedule for repayment of gas debts within a month. The schedule for payment of debts was never provided, however, for political reasons, Ukraine was not disconnected from the gas.
After the first Maidan
In 2004, the Orange Revolution began in Ukraine, during which Ukraine's aspirations to the European Union were outlined, and anti-Russian (sometimes openly chauvinist) rhetoric was repeatedly heard from the lips of both ordinary Maidan participants and some prominent politicians. Nevertheless, Russia took these changes very restrainedly.
In March 2005, after the Orange Coup, the new Ukrainian government announced to Gazprom the need to raise rates for the transit of Russian gas to Europe through Ukraine. The abolition of preferential rates for gas transit for Russia, in essence, would mean an increase in the revenues of the Ukrainian budget.
Nevertheless, Gazprom agreed to raise the tariff for transportation, but in turn linked it to the abolition of the preferential gas price for Ukraine in the amount of $ 50 and the appointment of the average European gas price in the amount of 160-170 $ / thous. m³.
The Ukrainian government categorically rejected such a proposal, insisting on the extension of the previous preferential treatment of gas agreements with Russia. The stubborn intransigence of the Ukrainian side, as well as not particularly concealed anti-Russian rhetoric, led in December 2005 to toughening Russian demands. Gas price increased to $ 230 / thous. m³.
Then, due to the failure to sign contracts for the supply of gas for the next year, from January 1, 2006, the supply of gas to the Ukrainian market was stopped. But since the main deliveries of Russian gas to Europe are carried out through gas pipelines on the territory of Ukraine, then at the direction of the leadership of the latter, during the first days of 2006, a selection of export gas was carried out not coordinated with the Russian side to meet its own needs. This was immediately noticed by European consumers.
On January 4, 2006, Gazprom and the Ukrainian government nevertheless managed to agree on the gas price, which amounted to $ 95 / thous. m³. This price became possible due to the mixture of expensive Russian and cheap Turkmen gas. However, some time later, Turkmenistan also made claims to Ukraine about underpayment.
After the second Maidan
Nevertheless, Ukraine's gas debts continued to increase. In 2010, Russia made concessions; a new agreement was signed on the cost of procurement and transit of gas through the Ukrainian gas pipelines; the reduction of the rate by 30% in this agreement was linked to the extension of the agreement on the lease by the Black Sea Fleet of the Russian Federation of the naval base in Sevastopol until 2042. However, due to the civil war in Ukraine, which began due to yet another “color coup,” the entry of Crimea into Russia following a popular vote, and the coming to power in Ukraine of a new government in 2014, which Russia considers illegitimate, the Kharkiv agreements became invalid.
Currently, Ukraine's gas debt to Russia is over 120 billion rubles (3.35 billion dollars). Against the backdrop of the Ukrainian civil war, there is an increase in nationalist sentiment and outright anti-Russian rhetoric. The diplomats of the new Ukrainian government are not ready (perhaps due to their still small experience) to negotiate more favorable conditions, as representatives of other European countries did in their time. Because of this, Russia canceled all gas discounts to Ukraine, and now the official price is $ 380 / tsd. m³. Although the price for gas transit through the territory of Ukraine has also increased.
