Thursday 28 March 2024 | 09:48

A Russian pipeline in Belarus to bypass Ukraine

06.05.2013  |  Economy   |  Roman Grom, Eastbook.eu,  
A Russian pipeline in Belarus to bypass Ukraine

Moscow has announced a new large-scale initiative – the building of another gas pipeline bypassing Ukraine via Belarus, writes Roman Grom.

Russian President Vladimir Putin entrusted Gazprom with further developing of the gas pipeline “Jamal-Europe 2″ to supply gas to Poland, Slovakia, and Hungary. The new pipeline will bring anything good neither to the Ukrainian-Russian relations, nor Belarus, as all the benefits from the new project will bypass the country.

Time and again Belarus has advocated the construction of the second pipeline “Jamal-Europe”. Minsk has been lobbying for it for several years. The first vice-premier of the Belarusian government Vladimir Siamashka repeatedly spoke in favour of the pipeline. He argued that the new pipeline would be the shortest route for gas transportation and that Belarus will benefit from this project in the form of taxes from gas companies working on its territory – the more transit, the higher taxes. Yet the project has got off the ground only after Moscow had become the owner of Beltransgaz. In the present circumstances, when the Kremlin possesses 100% of the Belarusian gas transportation system, the new pipeline will not pay, apparently, any real dividends.

The new branch of the gas “Jamal – Europe” pipeline is to have been built by 2018. This time-frame was set by the head of Gazprom Alexey Miller during his meeting with the President of Russia. Initially Moscow decided to re-start the new route after a scandal with Ukraine. Miller said that Ukraine cheated by getting reverse gas supplies from Europe through a closed gas line in the border area with Hungary. And the new project would help Moscow to continue the strategy of building a gas pipeline bypassing Ukraine. “Jamal – Europe – 2″ is primarily directed against the officials in Kyiv. Obviously, after the launch of the pipeline, gas transit through Ukraine will lose its relevance. The new-old branch will run up to additional 15 billion cubic meters of gas through the territory of Belarus.

Poland does not support Putin’s ideas, as they can be in the way of the pro-European direction of Ukrainian politics. Polish politicians believe that the gas war could push Ukraine into the arms of Russia, because Kyiv will not have any economic weapons against Moscow. The Polish Minister of State Property Mikalai Budzianowski made quite a brusque statement that the implementation of the construction project is up in the air, as the country does not need a new pipeline network. Poland ia building a liquefied gas terminal right now, and in the near future it plans to implement projects related to exploitation of shale gas. In addition, the pipeline system will soon be merged with the gas transport infrastructure of Slovakia, the Czech Republic, and Germany. That’s why the Polish authorities consider the construction of a new branch of Gazprom unreasonable. Poland has six months to give an answer to the Russian proposal on the construction of the pipeline.

It is equally important that Gazprom will not pay for the transit of gas through Belarus. The gas transportation system of Belarus is in the ownership of Gazprom. Today, therefore, the transit through the territory of Belarus through the pipeline “Jamal – Europe-1″ is the most cost-saving way for Moscow.

However, experts have doubts about a real need for another gas pipeline. At present, Russia supplies about 140 billion cubic meters of gas to Europe. The capacity of new gas corridors is several times bigger than the actual demand of the European market. It is very difficult to predict whether this project will be called-for in a few years, since now we can observe the inverse trend: the demand for Russian natural gas is going down.

Alexander Lukashenko sold Beltransgaz to the Russian giant in late 2011. At that moment, the price paid – $ 2.5 billion – was considered a successful agreement, as Minsk sold just a useless rusty pipe. However, it turned out that the condition of the pipe was not so bd. In case the decision on the construction of the “Jamal – Europe – 2″ is positive, it will be a strategic defeat for the economic interests of Belarus. As for bonuses that Minsk can get from the construction, they are minimal, if any. For the state budget, it would be just small taxes from Gazprom and jobs for Belarusian builders. All the other gas opportunities have already been sold.

Eastbook.eu

 

Other news section «Economy»

Leanid Zaika: Minsk decided to beat the Kremlin by Iranian oil
Leanid Zaika: Minsk decided to beat the Kremlin by Iranian oil
There are no strategic goals behind the purchase of Iranian oil, believes economist Leanid Zaika.
Stanislau Bagdankevich: The living standard will continue to fall in 2017, and possibly in 2018
Stanislau Bagdankevich: The living standard will continue to fall in 2017, and possibly in 2018
In 2017, Belarus will have to pay about $ 5 billion debts, which may affect the level of welfare negatively.
Leu Margolin: Industry cannot rise from its knees
Leu Margolin: Industry cannot rise from its knees
Although 30 percent of Belarusian enterprises can still be revived through urgent structural reforms.
Stanislau Bagdankevich: Next year will be harsh
Stanislau Bagdankevich: Next year will be harsh
Stagnation will continue in 2017, the standard of living will not rise, and the banking system may experience a crisis.
Andrei Yeliseyeu: Russia cannot impose quotas on the Belarusian dairy products supply
Andrei Yeliseyeu: Russia cannot impose quotas on the Belarusian dairy products supply
Belarus has already agreed to reduce the level of state support to agricultural producers in the framework of the Eurasian agreements.  
Leu Margolin: It is impossible to bring back the 500 dollars salary
Leu Margolin: It is impossible to bring back the 500 dollars salary
The authorities will start pressuring businesses to make them raise salaries.
Uladzimir Kavalkin: Drop in income? Salaries are finally becoming adequate to the economy state
Uladzimir Kavalkin: Drop in income? Salaries are finally becoming adequate to the economy state
Income may drop even a little bit more, but it will not be anything dramatic - within a few percent, expert believes.
Leu Marholin: In 2017, the probability of economic growth is close to zero
Leu Marholin: In 2017, the probability of economic growth is close to zero
In 2016, Belarusian authorities were expecting growth, too. However, the economy is going down.
EBRD will prepare five state companies for privatization
EBRD will prepare five state companies for privatization
The Belarusian government has invited the European Bank for Reconstruction and Development (EBRD) to prepare five large state-owned companies for privatization.
 Leu Marholin: We are heading full speed to the new nineties
 Leu Marholin: We are heading full speed to the new nineties
Regression of the Belarusian economy combined with the inertness of the government will make us recall the worst years.  
Uladzimir Kavalkin: Statistics on unemployment and real unemployment are poles apart in Belarus
Uladzimir Kavalkin: Statistics on unemployment and real unemployment are poles apart in Belarus
Officially, the unemployment in our country is reducing – if judging by the number of registrations at the labor exchange; however, the number of jobs doesn’t increase in the economy.
Leanid Zaika: Decline in prices on gas should lead to the reduction in utility costs
Leanid Zaika: Decline in prices on gas should lead to the reduction in utility costs
In the situation of cheaper prices on gas Lukashenka's decree on non-cash housing subsidies looks weird.
Point of view: Defence industry in Belarus evolved from helpless to a weighty branch of economy
Point of view: Defence industry in Belarus evolved from helpless to a weighty branch of economy
Recently Belarus State Military Industrial Committee announced that in the first half of 2016 its enterprises earned a net profit of $80m, thus over-fulfilling the assigned export plans by a quarter.
Leu Marholin: It looks like the Belarusian PM has got a fortuneteller
Leu Marholin: It looks like the Belarusian PM has got a fortuneteller
The fall of the economy will continue in 2016; we should hardly expect growth in 2017.
Why with the success abroad, Belarus’ agriculture keeps failing at home?
Why with the success abroad, Belarus’ agriculture keeps failing at home?
Poor economic conditions in the countryside, restrictions, unfair competition, inefficiency of state-owned agricultural enterprises also contribute to this ‘success story’, writes Aliaksandr Filipau.
Viktar Marhelau: We killed consumer demand inside the country
Viktar Marhelau: We killed consumer demand inside the country
In the situation of everyone’s impoverishment administrative procedures are now being perceived painfully.
Opinion: The question of what role China can play in Belarusian development remains open
Opinion: The question of what role China can play in Belarusian development remains open
On 20 June Lukashenka met with vice-chair and president of the Chinese CITIC Group Corporation Wang Jiong; it seems especially important in light of Lukashenka’s planned visit to China in September.
Lukashenka: Only lazy people don
Lukashenka: Only lazy people don't earn well in Belarus
All the conditions for everyone to be able to earn a decent salary have been enabled in Belarus, however, it is necessary to make some effort to get the money, assumes the president.
Leanid Zlotnikau: The government knows what to do with the economy, but will do nothing
Leanid Zlotnikau: The government knows what to do with the economy, but will do nothing
Belarus is losing currency earnings – in the 6 months of 2016 the country earned 3 billion less than in the same period in 2015. Instead of removing the causes of the flop the state relies on magic.
Russia
Russia's Rosatom agreed to replace reactor vessel at Belarus NPP
State Corporation Rosatom has agreed to replace reactor vessel at the Astravets NPP in Belarus.
Gintautas Mažeikis: The relation of political field and arena in the framework of information war

In his report, philosopher Gintautas Mažeikis discusses several concepts that have been a part of the European social and philosophical thought for quite a time.

“It is our big joint work”

It is impossible to change life in cities just in three years (the timeline of the “Agenda 50” campaign implementation). But changing the structure of relationships in local communities is possible.

Shhh! Belarus Wants You to Think It’s Turning Over a New Leaf

Minsk’s muddled media clampdown could jeopardize warming of relations with the West.

Mikhail Matskevich: How to create a local agenda and make it a problem solving tool

To achieve changes, you need to be interested in them and stop pinning all hopes on the state.