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Russian state-owned energy giant Gazprom should honor its existing and controversial deals with Ukraine instead of switching entirely to more efficient Nord Stream pipelines, President Vladimir Putin ordered on Wednesday.
Putin explained that although paying the penalties imposed by the EU was more profitable, he preferred to see contracts with Kiev continued. The Russian president’s comments came as gas prices reached unprecedented levels across Europe.
“Gazprom thinks it would be more beneficial to pay Ukraine a fine and improve gas transit through new systems,” he added. he told Energy Minister Nikolay Shulginov, from his residence in Novo-Ogaryovo, near Moscow, adding that he asked the energy giant not to continue down this path.
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With the construction of the Nord Stream 2 pipeline nearing completion, the St. Petersburg-based company believes it would be much more cost effective to deliver gas to Europe via the new pipeline system directly from Russia to Germany. under the Baltic Sea rather than using the old transit route through Ukraine, Putin said.
The president added that he is aware that, according to Gazprom’s calculations, it would reduce CO2 emissions from gas transit and cost around $ 3 billion less per year. However, Putin believes that honoring his long-term commitments is more important than quick financial gain.
No one should be put in a difficult situation, including Ukraine, despite all the problems related to Russian-Ukrainian relations at the moment.
The President also noted that Gazprom’s reputation as a “Absolutely reliable partner in all respects” must not be tarnished. Putin asked Shulginov to personally ensure that the commitments made under the gas transit contract with Ukraine are honored.
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There is a wide range of factors causing a massive increase in gas prices in Europe, but Russia is NOT one of them, insists the Kremlin.
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