Ministers of Energy of EAEU countries discussed approaches to setting prices of gas transportation for the Union’s common market

The Ministers of Energy of the five Member States of the Eurasian Economic Union (EAEU) discussed the single methodology of tariff (price) setting in respect of gas transportation services within the common gas market. The joint conference took place at the headquarters of the Eurasian Economic Commission (EEC) on September 19, 2018.

“Tremendous work has been done to establish the common gas market of the Union. We hold this conference to comply with the instruction of the Eurasian Intergovernmental Council in order to settle the only remaining difference”, – noted the Chairman of the EEC Board Tigran Sargsyan in opening the consultation.

The Member of the Board –Minister in charge of Energy and Infrastructure of the EEC Emil Kaikiyev informed the conference’s attendees on the work performed. “The groundwork for the program has been being actively laid since April 2016. The key steps to negotiate the draft program were taken in 2017, whereby more than 50 provisions causing parties’ discrepancies were agreed”, – told Kaikiyev.

The Head of the Ministry of Energy of Russia Alexander Novak reckons that “the program was formed and agreed except for the stated clause”.

The principles of setting tariffs for transportation of gas including the establishment of economically justified tariffs were approved on October 7, 2014 by the EEC Board.

It was proposed to incorporate into the program and international agreement on establishing the Union’s common gas market the tariff setting principles determined in these documents thus making them have a binding effect.

The Minister of Energy of the Republic of Belarus Viktor Karankevich emphasized the necessity to hold consultations with interested authorities of the Republic of Belarus on this issue.

The information on the conference’s outcomes will be reported at the next scheduled meeting of the Eurasian Intergovernmental Council.

“References made to the EAEU’s regulatory framework upon discussion of the program for establishing the common gas market shall be considered a very positive signal”, – stated Tigran Sargsyan, summing up the discussion of this issue.

The parties also discussed the possibility of regular meetings at the EEC venue at the level of Ministers of Energy of the ”five” Eurasian countries. This interaction format will facilitate the development of compromise decisions.

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