1. MYKHAILO GONCHAR NOMOS / STRATEGY XXI, UKRAINE Brussels, March 27 Transparency Regime for Trans-border Gas Flows: fundamentals and ideas

2. Most characteristic features of the gas crises in 2006 and 2009 crises concerned the whole Europe and took place in trilateral format: gas supplier, transit country and consumer; none of the crises was prevented by political or legal means; the crises were resolved by political means; end users, national governments of consuming countries and the European Commission did not have a complete picture of the crises development based on data from the metering system because the equitable system of gas flow control just does not exist.

3. General conclusions from 2006 and 2009 gas crises: both on interstate and on intercorporate levels, there are no instruments of trilateral cooperation of governments and companies within a single legal framework; existing mechanisms at the level of bilateral relations (Ukraine – the EU, Russia – the EU and Ukraine – Russia) are of political and diplomatic nature and do not suggest a possibility of their application in disputes (crises), which arise in trilateral format; a lack of trilateral mechanism for gas disputes settlement and the single legal framework for regulation of gas relations between three main European actors (Ukraine, Russia and the EU) incites Russia to press for transferring gas crises settlements into the bilateral format “Ukraine – the EU” or “Naftogaz – European consumers”, which allows Russia to avoid assessment (firstly legal one) of its behavior during the gas crises.

4. Some aspects of the Memorandum RF – EC concerning Early Warning Mechanism (EWM): the EWM works in retroactive but not preventive mode the proposed model of the EWM does not include the use of impartial control over energy flows the proposed EWM is quite unmanageable and difficult to organize Memorandum’s weak point is a lack of the third Party (transit party), which is an integral part of the technological gas trade chain the Memorandum is not an international agreement and does not create rights and obligations, regulated by international law

5. Exporter (RU) Transmitter (UA) Importer (EU) Approximated scheme of the tripartite cooperation (RU-UA-EU case) for EWM on-line verification

6. General scheme of the Transparency Regime for Trans-border Gas Flows as an Early Warning Mechanism on-line verification Exporter (RU) Transmitters EaP countries (UA, BY, MD) Importer (EU) 1. WORKING PRESSURE 2. INCOMING / OUTCOMING VOLUMES (DAYLY)

7. Parameters for on-line monitoring in daily mode in terms of gas sector №ParametersExporter country Transit country Importer country 1.*Working pressure on compressor stations along pipeline, MPa+++ 2.1Daily volume of out-coming gas from exit GMS, mcm/day++ 2.2Daily volume of incoming gas on entry GMS, mcm/day++ 2.3Daily transit volume of gas, handed over on the borders of transit country for end consumers (Europe), mcm/day ++ 3.Actual free pipeline capacity, mcm/day+++ * Simplified version – from trans-border compressor stations only

8. Reaction from the European Commission on Energy Transparency Regime

9. http://geostrategy.org.ua geostrategy@ukr.net mi.gor17@gmail.com THANK YOU FOR YOUR ATTENTION!