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00:00VERY GOOD MORNING TO YOU. LET ' S TALK ABOUT -- WHAT ARE THE CHANCES THAT THIS IS BLOCKED IN SOME WAY? > > IT IS DIFFICULT FOR ME TO ASSESS THE CHANCES OF IT BEING BLOCKED. THE HARM AND DANGER IT BRINGS CANNOT BE OVERESTIMATED. ANNA: YOU THINK IT SHOULD NOT GO AHEAD? > > IT SHOULD NOT GO AHEAD. ANNA: THERE ARE 39 SENATORS WHO WANT TO BLOCK THIS PROJECT. THEY DO NOT WANT TO SEE SIBERIAN GAS HAVE A HOLDOVER EUROPE. ARE YOU TALKING TO PEOPLE WHO SHARE YOUR VIEWS? > > WE TALKED TO MANY PEOPLE, AND MOST TO UNDERSTAND HOW THE MARKET IS ORGANIZED, IT IS GOING TO BE THE SAME GAS FROM THE SAME SOURCE. JUST A DIFFERENT ROUTE. ANNA: DO YOU THINK THE COMPANIES WORKING WITH RUSSIA ON THIS PIPELINE ARE GOING TO BE AT RISK OF SANCTIONS? > > THE WAY WE READ STATEMENTS, YES THE RISK IS HIGH. MATT: THE CONCERN IS THAT THE MONEY GOING TO RUSSIA AND THE OWNERS OF THESE ASSETS NEEDS TO BE STOPPED AS RUSSIA INTERFERES IN EUROPEAN COUNTRIES WITH THINGS LIKE POISONING AND ASSASSINATION ATTEMPTS. DOES THAT BOTHER YOU? DO YOU THINK THAT IS UNFAIR? ANDRIY: IT IS NOT ONLY UNFAIR BUT IT IS DANGEROUS. IT IS DANGEROUS FOR THE EUROPEAN UNION. IF THIS PIPELINE IS BEING COMMISSION, THE LIKELY OF RUSSIANS BEING ABLE TO USE THE WEAPONS WE HAVE SEEN SO FAR. IT MAY LEAD TO CONSEQUENCES. MATT: IS THERE A WAY FOR THE SAKE OF YOUR SHAREHOLDERS TO SEPARATE GAS FROM RUSSIA, SEPARATE BUSINESS FROM THE POLITICAL SPHERE SURROUNDING RUSSIA. ANDRIY: IF WE THINK ABOUT GAS MATTERS, THE PRACTICE IS SUCH THAT RUSSIA IS UNWILLING TO SEPARATE GAS AND POLITICS. FROM THEIR PERSPECTIVE, GAS IS IMPORTANT INSTRUMENT IN ACHIEVING A WIDER POLITICAL AGENDA. ANNA: YOU WENT TO A STOCKHOLM ARBITRATION -- ANDRIY: IT WILL OPEN A WAY FOR NEGOTIATIONS. ANNA: HOW MUCH TIME DO YOU GIVE THEM TO PAY? ANDRIY: THE PAYMENT IS DUE FROM THE DAVID DECISION WAS MADE. THEY HAVE ALREADY USED 20 DAYS OF TIME THEY SHOULD BE PAYING. MATT: IF YOU LOOK AT NATURAL GAS PRICES, THEY HAVE BEEN FAIRLY STEADY OVER THE PAST YEAR. FOUR YEARS AGO WE WERE HIGHER, THREE YEARS AGO WE WERE LOWER. WHERE DO YOU SEE NATURAL GAS PRICES GOING? DO YOU THINK THEY CAN HOLD THIS? FOR YOU AND YOUR SHAREHOLDERS IT IS HELPFUL, THIS STEADINESS BECAUSE IT TAKES AWAY UNCERTAINTY. ANDRIY: IT IS IMPORTANT FOR ANY CONSUMER FOR ANY TYPE OF ENERGY. OUR EXPECTATION WITH PRICES WILL GROW MODERATELY OR STAY THE SAME. MATT: WHAT IS YOUR FORECAST? WE ARE LOOKING AT 268, 270. ANDRIY: I WOULD NOT BE ABLE TO GIVE A SPECIFIC NUMBER. ANNA: LET ' S TALK ABOUT INVESTMENTS FOR YOUR BUSINESS. HOW MUCH GAS CAN YOU PRODUCE THIS YEAR? ANDRIY: OUR INVESTMENT NEEDS ARE QUITE HIGH. WE PLAN TO INVEST MORE THAN $2 BILLION THIS YEAR, AND OUR EXPECTATION IS THAT GROWTH OF OUR PRODUCTION APPROXIMATELY 6% LAST YEAR, IT WILL GROW HIGHER THIS YEAR. OUR PLAN IS THAT BY THEN, UKRAINE AS A COUNTRY SHOULD NOT BE NEEDING TO IMPORT ANY GAS. ANNA: YOU ARE TRYING TO RAISE MONEY ON INTERNATIONAL -- ANDRIY: WE ARE OPTIMISTIC, AND BELIEVED BY THE END OF THIS YEAR, WE WILL ACCOMPLISH A TURNAROUND AND GO FROM -8

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Andriy Kobolyev Says Nord Stream 2 Should Not Go Ahead

Andriy Kobolyev, Naftogaz of Ukraine chairman, says Russia is totally unwilling to separate gas and politics and that despite growing tensions with Russia, gas production in Ukraine will grow by $2 billion this year, while forecasting that Ukraine will not need to import gas by 2020. He speaks on “Bloomberg Daybreak: Europe.” (Source: Bloomberg)

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