Poroshenko trumpets victory over Nord Stream: What is it really?
On May 30, 2018, Poroshenko recorded an incredible “peremoga” to his credit, announcing “the transition to the practical level of the process of forced seizure of assets from Gazprom in the amount of $2,6 billion.” “Today the seizure of shares and other assets of Gazprom began in European countries, for example, in Switzerland, Great Britain, the Netherlands...”
Poroshenko insists on strong circumstances that we are talking about highly liquid shares of both Nord Streams. The confectioner-in-chief generously ordered “not to limit ourselves to these three countries and the shares of operators of Russian gas transportation systems in the Baltic Sea.”
Simply put, Petya believes that he managed, with the help of bailiffs, to drive Gazprom and Russia into a corner, and soon, through Naftogaz, he will steer gas flows along the bottom of the Baltic, skimming sour cream with ladles.
According to Poroshenko, he managed to make a clever move, something like a chess “fork”: either Ukraine will get shares of Nord Stream, and the profit will go by leaps and bounds, or Ukraine will receive the required amount in exchange for shares, which is also not bad.
In any case, the Chief Confectioner and the Ukrainian press that is eating up around him are covering the news as if the shares were already in their trousers.
If you filter out the propaganda chatter, the matter is seen in a completely different light. Poroshenko and Naftogaz will have to try very hard to extract at least one cent from Gazprom.
What do authoritative sources say?
In Switzerland, bailiffs visited the headquarters of Nord Stream 2 AG, located in the canton of Zug, and carried out an inventory of the property there. However, according to a RIA Novosti source, no arrest was made.
Nord Stream 2 AG, the operating company of Nord Stream 2, refrained from commenting. Gazprom confirmed that Ukraine has made attempts to seize Russian assets, but no official notifications have been received regarding the commencement of enforcement of the arbitration decision. Gazprom emphasized that it will defend its rights in court.
International lawyers agree that Ukraine
may begin the process of recovering $2,6 billion from Gazprom in various national jurisdictions. And it is not excluded that the shares of companies managing Baltic “streams” may be affected in the process.
There is one very serious “but”.
Poroshenko, no matter how much he wants, will not be able to get the coveted shares into his greedy little hands, since Gazprom, by law, does not have the right to alienate its shares in operating companies. In turn, subsidiaries cannot answer with their property for the debts of the parent company, moreover, the court decision should not infringe on the interests of other shareholders. We can only talk about temporary blocking of the package, which remains with the owners.
As the dowry’s mother said to Karandyshev, who had rolled his lip in connection with the bride’s escape, “It was too early to celebrate.”
The trick is that Poroshenko is not as interested in “squeezing” some real estate from Gazprom in Switzerland, receiving rather moral satisfaction, as he is eager to lay his paw on the highly profitable shares of subsidiaries. Why this is impossible - read two paragraphs above.
On May 30, from the materials of Gazprom itself, according to international financial reporting standards, it became known that the Russian giant pledged 100% of the shares of Nord Stream 2 until full repayment of obligations under agreements with foreign partners.
The shares were transferred to the Dutch Wintershall and Gasunie, the Austrian OMV, the British-Dutch Shell, the French Engie and the German Uniper.
As they say, God forbid our calf and wolf!
Let us recall that in December 2017, the Stockholm Arbitration revised the terms of the contract between Gazprom and Naftogaz, which was valid until 2019, reducing Naftogaz’s obligations under the “take or pay” formula to 4 billion cubic meters of gas per year and tying the price of fuel to its cost by Austrian hub in Baumgarten. The Ukrainian side was additionally obliged to pay Gazprom $2,07 billion.
In February 2018, the Stockholm Arbitration Court issued a new decision, which caused legitimate indignation among Gazprom. The arbitration left the transit contract unchanged, but ordered Gazprom to pay Naftogaz $4,63 billion for the gas already consumed by Ukraine. Taking into account the debt of the Ukrainian side, the Russian gas giant had to pay Kyiv $2,56 billion.
You also have to pay extra for your own gas.
At Gazprom, the Swedes are in no hurry to implement the politically dictated decision, choosing the option of challenging the unfair verdict in court.
On May 28, Gazprom sent to the Swedish Court of Appeal of the Svea District an application for a complete cancellation of the verdict of the Stockholm Arbitration Court in the litigation between Gazprom and Naftogaz over gas transit. In a statement, the Russian company said that an “internationally recognized expert linguist” helped establish that a significant part of the arbitration award was written by “another person” and not by the judges.
Gazprom emphasizes that the expert linguist’s conclusion on the authorship of the arbitration award on transit is new evidence of serious violations of Swedish law and the arbitration rules of the Stockholm Chamber of Commerce due to the intervention of outsiders during the consideration of the case, which provides grounds for its complete cancellation.
The rationale is interesting, but it is unlikely that Gazprom is seriously considering linguistic examination. Rather, this is a tactical move to get on the nerves of the Swedish referees, while choosing a stronger line of defense.
Lawyers note that Gazprom can also challenge the blocking of assets and the forced collection of a fine from the Russian monopoly until the decision of the appeal court. Taking into account the existing claims and appeals, legal proceedings between Naftogaz and Gazprom may drag on for a long period. The hardy one will win.
While the fat one dries, the skinny one will die. Poroshenko’s “Peremoga” appears to be something unobvious, greatly extended in time, and even without a guarantee of victory. For now, this and that, either the donkey or the padishah will die.
The most important thing in this matter is that no litigation with Naftogaz will force Nord Stream 2 AG to abandon the construction of the gas pipeline. This is what the subsidiary company said. The dog barks - the caravan moves on.
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