Ukraine to fail to earn US$450 mln annually over TurkStream – Ukrainian GTS operator

REUTERS CEO of LLC Gas Transmission System Operator of Ukraine (GTSOU) Serhiy Makogon says Ukraine will fail to earn about US$450 million per year over the launch of the TurkStream gas pipeline, therefore, the Ukrainian gas transmission system (GTS) capacities will be offered to other suppliers. "This can&#39;t be called a loss, it&#39;s just the revenue that will not be received. We estimate it about US$450 million per year. But we don&#39;t lose anything, we just won&#39;t earn the money. How will we compensate this? We will be looking for new markets. We offer our capacities to other suppliers in the region," he said at a briefing on January 9. Read alsoGas transit via Ukraine to drop by 15 bcm in 2020 over TurkStream launch – Ukrainian GTS operator According to Makogon, if in the region there are gas stocks that will be financially feasible to be imported into Ukraine, suppliers will be able to use the Ukrainian GTS, which will let Ukraine earn additional money. Moreover, the GTSOU is ready to offer suppliers a new service, namely "short-haul transit." "We are also working on new directions. This is the so-called &#39;short-haul transit,&#39; when we will be providing gas transit services from Poland to Hungary, from Hungary to Slovakia, and from Poland to Romania in this cross-border corridor and by use of our underground storage facilities [USFs]. This can be called the first step towards creating a hub," he added. Makogon also noted that the Ukrainian USFs has a customs warehouse regime that allows pumping gas to Ukraine without having to pay customs duties, while it can be exported to other countries where it makes economic sense to sell gas. The official hopes the company in the coming weeks will start to provide services for its first customers "who are willing to see how it works in our realities." As UNIAN reported, LLC Gas Transmission System Operator of Ukraine earlier said that gas transit through Ukraine would decrease by 15 billion cubic meters (bcm) in 2020 as a result of the launch of the TurkStream pipeline since a number of Balkan countries would no longer receive gas via Ukraine. Gas transit through the Ukrainian GTS in 2019 totaled 89.58 bcm. Presidents of Russia and Turkey Vladimir Putin and Recep Tayyip Erdogan on January 8 announced the official launch of the TurkStream gas pipeline bypassing Ukraine under the Black Sea.

Ukraine to fail to earn US$450 mln annually over TurkStream – Ukrainian GTS operator

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