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Head of International Arbitration Practice in ART DE LEX Law Firm, Artur Zurabyan appeared as an expert to ITAR TASS with respect to possible reverse flows of natural gas to Ukraine

The gas reverse to Ukraine requires the approval of "Gazprom". Artur Zurabyan, Head of International Arbitration and Dispute Resolution Practice in ART DE LEX Law Firm, said to ITAR TASS.

"Russian gas is supplied to European partners through metering device between the west border of Ukraine and those of respective European states. And if we have a look at the map of Ukrainian gas transmission network, it is easily understood that the country is generally unable to allow reverse gas flows from the west to the east. Accordingly, it is necessary to distinguish the concept of so-called 'virtual reverse', which is specifically debated nowadays, and actual supplies of gas from Europe to Ukraine, - noted the attorney.

To his words, the virtual reverse comes to when a piece of pipeline is perceived to loop after passing the Ukrainian border with Slovakia.

"In other words, after gas transmission to European partners through metering devices and up to the border, that is up to transmission. In this case the loopback gas will artificially, without any actual gas flow, inflate the metering data, and Ukraine will be able to collect the marginal trading earned in such manner on the border with Russia", says Zurabyan.

The lawyer underlines that this, with regard to the Ukrainian gas transmission network, practically is the only appropriate variant for Ukraine since then the mentioned volumes of natural gas could be allocated throughout the whole country.

However, such may infringe the rights of JSC "Gazprom" as the gas provider since the claims against it may be raised in any moment due to the fact that the actual supplies of gas to Europe in the agreed volume were not performed. The European Commission also considers that the gas reverse in this context cannot be as violates the agreements with "Gazprom". For implementation of similar and like scheme in the scope of legal boundaries it is essential to obtain consent from "Gazprom", points out Artur Zurabyan

To his words, the actual gas flow from Europe implies the pipeline construction that requires significant investments from the Ukrainian party, which is quite problematic at present. Besides, the pipeline cannot be constructed in aggressive duration even though financially well-supported. Otherwise, the aforementioned flow may be allowed only to the West of Ukraine.

It may happen that the inability to supply gas to the East of Ukraine in case of the suspension or cease of gas flow from the Russian party to Ukraine for implantation of the reverse flow scheme may be used by the de facto Ukrainian Government in negotiations with the Russian Federation.

Earlier, the Chairman of the Management Committee of "Gazprom" voiced his doubt that the gas flows to Ukraine can be allowed under the reverse scheme from Europe. "Judging by the Ukrainian gas transmission network, it is not hard to understand that the whole gas pipeline system is designed to the unidirectional functioning, and it is technically impossible to allow reverse flows", he highlighted in the interview with TV channel "Russia-24". – In respect to any virtual reverse, the issue on lawfulness of such flows arises. It is unclear on which legal ground Ukraine may dispose of the gas from "Gazprom" secured in the pipeline. Therefore, the legal issues may be touched".

The German company "RWE" announced that from Tuesday it would start the reverse gas flows to Ukraine through Poland. The supplies will be implemented on the ground of the 5-year framework contract, signed by "Naftogaz" and RWE Supply & Trading on May 2012.

Pursuant to the contract, the volume of supplies amounts up to 10 billion cubic meters a year. It is said that the gas flows to Ukraine will be based on "European wholesale gas prices", including the transport charges.

"RWE believes that the significant amount of gas flows might be allowed provided that the political and technical transport barriers on the Ukrainian-Slovak border are eliminated in the nearest weeks or months"– emphasized in the news.

In 2013, RWE Supply & Trading already supplied around 1 billion cubic meters of natural gas to Ukraine.