August 17, 2014

Refusal of the Austrian Company OMV to Supply Gas to Ukraine Is Not a Disaster.

Refusal of OMV to supply gas to Ukraine on the reverse pattern is predictable, unpleasant, but — not the end of the world.

First of all it should be noted that this is the matter of one (even if the biggest Austrian) commercial company, not of Austria and its government.

In July, after the announcement of «Naftogaz of Ukraine», many European companies expressed a desire to reverse gas to Ukraine. OMV was not among them. This is not surprising. Especially after the recently signed agreement with the Russian side on the «South Stream». This fact once again shows that our information and economic work in the EU is neglected. While the Russian Federation is working on all aspects.

Besides, OMV has bad associations with Ukraine of the period of construction of the pipeline «Odessa-Brody» and privatization of refineries. The matter is that in our relations with Western companies we need to be, at least, honest. After all, nothing gets forgotten.

The important thing is that nobody forbids Ukraine to buy gas at European hubs, particularly in Baumgarten, Austria. We should make agreements with Warsaw, Bratislava, Budapest, Bucharest and Brussels on gas supplies already now (for the nearest heating season) and for the future. Besides, we must always remember that our main resource is reduction of gas consumption up to giving up its imports completely in the future. But this will take at least 3–5 years.

Sadly, the situation is the way it is. After all, Russian gas would be the cheapest for us. And the organization of its reverse gas supplies will be unprofitable for Russia. But this is Russia's choice.