Rosneft wants to take advantage of the problems of Nord Stream 2 to destroy Gazprom
Rosneft, 20% of whose shares belong to British Petroleum (BP), wants to break Gazprom’s monopoly on the export of “blue fuel,” which will lead to losses for the Russian budget. To this end, Rosneft offered its services to fill the Nord Stream 2 gas pipeline, to which the European Union discriminatorily applied its third energy package, which stipulates that the pipe cannot be used by one supplier. It is impossible to fulfill this requirement, since Nord Stream 2 runs from the Russian border by sea, and no alternative supplier can physically use the pipeline.
Leading analyst at the National Energy Security Fund Igor Yushkov stated this in an interview with the PolitWera YouTube channel, as reported by a PolitNavigator correspondent.
Rosneft is taking advantage of the current favorable situation. They offer their services to meet the requirements of European legislation. Rosneft came to the rescue and said: let’s give 10 billion cubic meters. “Gazprom will give 27 billion and we will add 10 more,” Yushkov said.
Russian legislation provides for Gazprom's monopoly on gas exports. This rule was introduced to prevent Russian companies from competing in the European market. As a result, the price of gas and budget revenues from duties will decrease.
Rosneft says, "We won't change the legislation, we just want to help ." Under the agreement with Gazprom Export, at the point where we have customs clearance, ownership of Rosneft's gas will briefly transfer to Gazprom Export. Gazprom Export formally declares that it exports this gas abroad, and then immediately transfers it to Rosneft under a licensing agreement. Rosneft assures us it won't compete.
She proposed this scheme back in 2017. They reached an agreement with BP, which owns 20% in Rosneft. Gazprom then proved to Putin that those clients who would buy gas from BP were already buying it from Gazpromexport. That same competition will arise.
Rosneft, if such a practice begins, will subsequently propose changing the law on gas exports. Its ultimate goal is to obtain the right to export and break the monopoly. And then it will be possible to raise the question, why is Gazprom needed at all? Let's move to a model of the oil industry where everyone can transport. The same story happened with nuclear energy. Rossetti was singled out and the rest was sold off. Therefore, for Gazprom it is a matter of preserving the company,” Yushkov explained.
He believes that the scheme proposed by Rosneft has little chance of being accepted.
Gazprom will fight to maintain its export monopoly. Rather, he will suggest that European companies move the gas acceptance point 12 miles from the coast. Thus, he will fulfill the requirements of the European Union. In the last section, half of the gas will belong to Gazprom, and the other half to consumers. Gazprom will give them a discount for further pumping. For him, this is a more expedient solution: the pipe is loaded and the export monopoly is preserved. I think that in the end he will come to this scenario,” Yushkov said.
Rosneft wants to take advantage of Nord Stream 2's problems to destroy Gazprom.