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Virtual Reverse Gas Flow to Ukraine Requires No Russian Permission – Slovakia’s Eustream

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Reversing gas flows from Slovakia to Ukraine would not require the permission of Russian gas giant Gazprom if it is virtual, not physical, the spokesman of the Slovak gas transmission operator Eustream told RIA Novosti on Wednesday.

MOSCOW, April 9 (RIA Novosti) – Reversing gas flows from Slovakia to Ukraine would not require the permission of Russian gas giant Gazprom if it is virtual, not physical, the spokesman of the Slovak gas transmission operator Eustream told RIA Novosti on Wednesday.

"Eustream is quite a competent company with total control over all gas transportation operations in Slovakia. Therefore, we cannot confirm the information that Eustream needs some sort of permission from Gazprom for reverse flow of fuel to Ukraine,” said Eustream, adding that the statement applies only to virtual reverse flows.

"The negotiations with Ukraine are going on as scheduled. Our Ukrtransgaz counterparts accepted the invitation to visit Bratislava for a business meeting next week,” said the Slovak company.

A Eustream spokesperson was cited by Reuters on Tuesday as saying that a reversal of gas supplies through pipelines delivering Russian fuel to Slovakia breaks the company’s contract terms with Gazprom. Following talks in Brussels, Ukrainian Energy Minister Yuriy Prodan also said that Slovakia cannot fully implement the reverse gas supply to Ukraine due to restrictions associated with the Gazprom agreements.

On Saturday, Gazprom chief Alexei Miller said the idea of organizing reverse gas flows to Ukraine from Europe is quite dubious. In an interview with the Rossiya 24 TV network, Miller explained that a physical reverse is likely technically impossible, and a virtual reverse would require legal validation.

Ukraine has been buying gas in Europe since November 2012, particularly from Poland, under an agreement with the German RWE, with additional supplies via Hungary starting at the end of March 2013. Currently, Kiev is trying to negotiate a reverse gas route through Slovakia. Ukrainian authorities hope that the reversed gas will be cheaper than the Russian equivalent by $100-$150.

na/yz/rm

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