Russia continues to supply cheap gas to Ukraine and the EU – media
After the Russian invasion, traders who are not typical for the European gas market became more active. De facto, these are companies affiliated with the Russian Federation that continue to supply Russian gas to the Balkans and Ukraine through a hidden mixing scheme, Ukrainian News reports.
A striking example is the “Swiss gas trader” Petroalps SA, established in 2011. Employees and founders are of Russian citizenship. It delivers liquefied gas by rail from Kazakhstan to the Temryuk terminal (Krasnodar Territory, Russia), where Kazakh gas is mixed with Russian gas in a ratio of 45% + 55%. The “Kazakh” gas is then pumped into an LPG tanker and sent to Romania to the Octogon Gas&Logistics gas terminal (which exclusively works with Interport gas SRL). The terminal is owned by Valentin Pocora, a former Romanian customs officer who is facing criminal charges for smuggling and tax evasion.
Rhinestone Trading Gmbh, an “Austrian” trader, sells mixed gas to Ukraine and the Balkan countries. The scheme is the same: Kazakh gas is mixed with Russian gas at the Temryuk terminal and then delivered by tanker to Octogon Gas & Logistics in Romania. Certificates of origin indicate Turkish, Kazakh or “European” gas. According to the Polish Glob Terminal, the ultimate beneficiary of the Austrian company Rhinestone Trading GmbH is a Russian citizen, Maxim Dekhtyar. Until February 2022, the company was actively developing wholesale gas sales in Ukraine through UKRDNIPROGAZ LLC (later renamed UDG TRADING).
Traders affiliated with the Russian Federation are dumping on the markets of Romania, Ukraine and Bulgaria, misleading consumers and customs. Gas with a genuine certificate of origin from Kazakhstan, Turkey and other European countries on FCA terms is quoted at the Romanian port at the level of the Sanotrach price + $140 per ton. The price of Russian-Kazakh gas is $90-95 per ton (on FCA terms in the port of Romania, according to the Sanotrach+ quote). The reason for this significant difference is the presence of cheap Russian gas in the mix. Ukrainian traders, by buying a “smoothie” of cheap Russian gas, are actually cooperating with Gazprom, the main sponsor of the Russian army.
According to the A-95 Consulting Group, there is no direct ban on the supply of LPG of Russian origin in Ukraine. However, the Cabinet of Ministers Resolution No. 426 of April 9, 2022, which establishes an embargo on the import of goods from Russia into Ukraine under the customs regime, is in effect. The document supplements CMU Resolution No. 1147 of 30 December 2015, which bans imports of goods of Russian origin in accordance with the approved list. However, the list does not include any energy resources. This “window” is used by traders to import Russian gas into Ukraine from the customs territory of third countries. And 51% of European gas in a batch is enough to obtain the EUR1 certificate.
In its Resolution of October 6, 2022, the European Parliament called for a complete embargo on fossil fuel imports from Russia. Romania banned imports and transit of Russian gas and announced the development of its own Neptune Deep gas field in the Black Sea. Ukraine’s Foreign Ministry, the Security Service of Ukraine, and Interpol should do everything possible to prevent the distribution of Russian gas through the Romanian Octogon Gas & Logistics terminal, which has become a Russian gas hub.
