A Snapshot of Key Developments in the External Relations of the Russian Gas Sector
by Jack Sharples, EGF Associate Researcher on the external dimensions of Russian gas

Key points:

• Gazprom Gazprom expects gas prices for its European exports to fall by an average of 14 percent in 2013, as it prepares to grant $4.7bn in price discounts over the next year.
• Ukrainian wholesale gas importer Naftogaz refuses to pay a $7bn bill from Gazprom for unused gas in 2012, and challenges the take or pay terms of the Naftogaz-Gazprom contract.
• Nord Stream AG receives a construction permit for the pipeline’s final onshore German section, although plans for Nord Stream’s expansion are already facing delays.
• Gazprom increases its estimates of the cost of South Stream, with plans for extra investment in the pipeline’s onshore Russian section.
• Gazprom takes a final investment decision on its Vladivostok LNG terminal, with the Asia-Pacific region being the target market, while yet another meeting with China’s CNPC concludes without the announcement of concrete progress towards finalising Russian gas supplies to China.
• Gazprom’s export monopoly comes under further pressure, as Rosneft President, Igor Sechin, calls for the liberalisation of Russia’s gas exports.
• Celebrations of Gazprom’s 20th anniversary are overshadowed by the passing of its former-Chairman, Rem Vyakhirev.

• March 4, 2013

The February 26–27 round of the nuclear negotiations involving Iran and the P5+1 group (all five permanent UN Security Council members and Germany) in Almaty went as well as might have reasonably been expected.

• March 2, 2013

Tajikistan is officially a full member of the World Trade Organization (WTO).

• March 2, 2013

Russia may agree to make a concession to Ukraine regarding clearance of movements of the Black Sea Fleet units outside their bases, although no final agreement has yet been achieved on this matter, the Dzerkalo Tyzhnia Ukraine weekly has reported citing sources familiar with the process of negotiations.

• March 2, 2013

"Tactical nuclear weapons that are constantly threatening the United States must become the factor that will deter large-scale aggression. Holding it at gunpoint - this is the deterrent," General Colonel in reserve, MGIMO Professor, Leonid Ivashov, said in an interview with Pravda.Ru editor-in-chief Inna Novikova.

• March 1, 2013

After two intense days of nuclear talks in Almaty, Kazakhstan, Tehran issued a statement that described negotiations as a positive step forward due to a "more realistic" position adopted by the "Iran six" nations that compromise the UN Security Council's permanent five members plus Germany.

• March 1, 2013

China appears to be pressing ahead with plans to invest in a North Korean free trade zone in a sign that its recent nuclear test has not soured its economic ties with its only major ally.

• March 1, 2013

In the case of a military solution of the Iranian problem, the South Caucasus and Central Asia would inevitably be drawn into the conflict, director of the Caspian Cooperation Institute Sergey Mikheev believes.

• February 28, 2013