- I'm Ksenia Chernyaeva from Interfax. At the end of 2019, the gas contracts signed in 2009 between Gazprom and Naftogaz will expire. Do you think that there's a risk of stopping transit through Ukraine, given that it's just one and a half months left until January, 1st? The contract with Belarus also expires on December, 31st. What's the state of the negotiations about the price of gas? Thank you.
Vladimir Putin: As to negotiations with Ukraine and the risk of stopping transit, we've repeatedly stated that we're ready to work with Ukraine both as a country transiting our gas to Europe and as an importer of our gas. Note that we offer lower prices than what Ukraine pays for Russian gas that it buys "as European" through side pipelines. I want everyone to understand that this is impossible. Gas can't flow in one direction in one half of the pipe and in the other direction in the other half. It's nonsense, soft-boiled boots. This is absolutely impossible. We know how it works in terms of technology. It goes into the pipe, then there's a loop made. They made a side pipe and pump it back. What's the pipe's construction? It was made in the Soviet Union. There's a transit pipe with branch pipelines all over Ukraine. They credit it and then it appears on the books as gas from Europe. That's nonsense. We realize it well. We just don't resent it to avoid escalating the situation. But we said that if we supply it to them directly, we're even ready to decrease the price by 20-25%. Mr. Medvedchuk and Mr. Boyko came to meet with the Russian prime minister. And Medvedev asked them why they care about it when they aren't members of the government and are unlikely to become ones. They gave a mature answer. They said that it's important for them that Ukraine and Ukrainian consumers received 25% cheaper gas. They said that they would be happy if they triggered that process. I think that this is a mature political position in the interests of Ukrainian citizens.
What can we see actually taking place now? Naftogaz brought another action to court for over six billion. That's nonsense. They're just escalating the situation. What for? We said that we're ready, with the assistance of the European Commission, to reach any agreements. If Ukraine wants Ukrainian laws to govern it, we're ready for it. If Ukraine wants European laws to govern it, as it undertook to implement European laws, we're ready, do it. We notified the European Commission about it. I've said it to my colleagues in France and Germany. If Ukraine manages to implement the laws of the European countries, let them do it. They provide for the division between generating companies and transit companies. Will they be able to do it within the time left? Well, they undertook obligations before Europe, not us. Let them do it, we're ready for that. But not everything depends on us. Therefore, there's probably a risk of stopping transit, given the circumstances I've mentioned. The negotiations with Belarus are being held according to the schedule. I hope that we'll agree by the end of the year.
- Do you think if there's a necessity to continue cooperating with the OPEC countries in decreasing oil production?
- There is. We're holding very constructive dialogue with OPEC. We understand the reasons for such a tough stance of our friends in Saudi Arabia concerning Aramco's IPO. Everyone understands it. This is an open secret. But it doesn't matter. They have present interests. And we should respect it, which we do. As to the prospects of cooperation, it won't be only about restraining or decreasing production. It also includes some other areas. But the system of relations existing between Russia and OPEC, as well as with other non-OPEC countries, proved to be an efficient tool to preserve balance in the world power market necessary to everyone — both consumers and producers of energy resources. We suppose that we can achieve that balance by joint efforts not to anyone's detriment but to everyone's benefit. I mean that stability in world power markets is a weal both for consumers and producers, which means that it's a weal for the entire global economy because it provides a basis for stable supplies of energy resources to the global market at the prices acceptable to everyone.
Thank you very much. Take care.
