KYIV --
Paris. 2019. Yuriy Vitrenko -- now CEO of Naftogaz, Ukraine’s largest oil and gasoline firm -- got here face-to-face with the person who's holding a lot of the world guessing in a dramatic, high-stakes recreation of geopolitical chess.
“He's, I might say, a bully,” Vitrenko mentioned, describing Russian President Vladimir Putin. “Alpha.”
Vitrenko, talking from an ultra-modern company assembly room with a panoramic view of the Ukrainian capital, mentioned he was making an attempt to gather billions of dollars from Gazprom, Russia’s state-owned gasoline firm. He ultimately obtained paid.
The vitality relationship between the 2 international locations is deeply embedded and profitable. Some may even discover it stunning: enterprise with the enemy. Yearly, Russia pays Ukraine’s US$2 billion in so-called “transit charges” for the power to move its product via Ukrainian pipelines. Ukraine doesn’t use that oil and gasoline. However a lot of the remainder of Europe does. The European Union will get a few third of its pure gasoline from Russia. And a few third of that passes via Ukraine.
Amid the intensifying standoff between Russia and Ukraine, there's rising concern Putin may flip off the faucets, and choke off provide to Europe, which has been standing by Ukraine diplomatically and militarily via NATO, as Russia reinforces its border with greater than a 100,000 troops.
If Russia makes use of gasoline as a “weapon,” Vitrenko admits, “it'll ship gasoline costs and oil costs even larger.” Within the winter -- when hundreds of thousands rely in pure gasoline to warmth their properties -- the influence might be devastating.
Plus there’s the financial hit. “We're by far the biggest taxpayer and one of many financial form of pillars,” Vitrenko says, including that Naftogaz pays as a lot in taxes as Ukraine spends on its navy.
Whether or not Putin triggers an vitality conflict with one in all his largest continental clients is anybody’s guess, which provides him leverage. However the truth that the U.S. is already co-ordinating with its vitality companions in North Africa and the Center East to bolster European provides reveals there are actual worries.
NATO Secretary Common Jens Stoltenberg says the standoff “demonstrates the vulnerability of being too depending on one provide of pure gasoline.”
For Ukraine, one other fear is Nord Stream 2. Fuel hasn’t began flowing via the $14-billion pipeline from Russia to Germany, however Ukraine sees it as a possible safety risk if and when it does – as a result of it totally bypasses Ukraine, probably making the nation much less related within the eyes of Europe, in line with Vitrenko, and probably much less essential to defend.
“When … Russian gasoline flows to Europe via Ukraine, we perceive that we're to an extent … in the identical boat with Europe, and they'll instantly really feel the impact of a full … conflict.”
As for the Canadian contribution to this point, which features a three-year-extension to Operation UNIFIER, Vitrenko says he's grateful, but in addition desires Ottawa to decide to sending deadly weapons. Canadian Defence Minister Anita Anand says that possibility is “on the desk,” however hasn’t made agency commitments, nor has she signalled what standards Canada will use to make that dedication.
Describing a Canadian present he used to observe “with horse police” -- Due South -- Vitrenko says “Canadians are portrayed as very peaceable and never aggressive.”
“However on the similar time Canadians, towards your nature, implies that you need to be robust and typically even robust.”
Like Russia’s subsequent transfer, Vitrenko additionally wonders what Canada’s will probably be.
CTV Nationwide Information’ Omar Sachedina, proper, speaks to Naftogaz CEO Yuriy Vitrenko.
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