For whom is the shopping principle "Take-or-Pay" good?

Any large supplier is interested in optimizing its sales volumes. To solve this problem, it is necessary to predict the volumes of products shipped to customers and based on these quantities to carry out planning. Hydrocarbon trading is the most complex marketing system, both the stability of the streams (what the consumers are interested in) and the systematic nature of the profits depend on stream optimization. Recently, in connection with gas supplies to Europe and Ukraine, the commentaries often use the term Take-or-Pay. What is it and why does the introduction of this principle cause discontent among some of Gazprom's foreign partners?

The Ukrainian contract of 2009

It was the conditions of the contract concluded in early 2009 that led to the introduction of this principle as one of the three conditions for settling the interstate economic dispute. In addition to Take-or-Pay, the future relationship included the liquidation of the intermediary firm (RosUkrEnergo) and the increase in the price of the goods being sold. The contract is beneficial to the Russian side and infringes the economic interests of Ukraine, but nevertheless it was signed. And if the price to this day seems to many to be "unfair", "enslaving", despite the fact that the treaty is voluntarily endorsed by the high negotiating parties, the condition "take or pay" for some unusual conditions can not be attributed. According to him, Ukraine is guaranteed to receive a stipulated amount of gas. In case of a shortage, it is obliged to pay a certain amount that is smaller than the established maximum, but greater than the actual amount received. At the same time, such a fine can not be considered a fine. Why?

Advantages of the principle

The principle of Take-or-Pay ("take or pay") is not so bad for any two parties that contract. Ukrainian analysts, cursing Gazprom for the imperial position, usually forget to explain that the paid but not selected volume of gas is not lost, but goes on to the next period in which consumption is expected to grow. Since hydrocarbon prices have a steady upward trend, there is nothing to worry about having a reserve of already-paid blue fuel. This volume can be taken into account (with a minus sign) when drawing up an application for the next year, this makes it possible to more reliably calculate the size of future needs. The Take-or-Pay condition imposes duties not only on the buyer, but also on the supplier, which after the entry into force of the contract can no longer refuse to provide the declared amounts (of course, in the case of timely payment).

As in Russia?

In favor of the "take or pay" principle, at least the fact that European countries importing gas from the Russian Federation are also working this way (after our country's accession to the WTO). Ukraine is not a special country against which the special bondage rule is used. Moreover, within Russia, the same principle applies to large consumers. Small enterprises have difficulty connecting to gas mains, since the amount of guaranteed to be withdrawn annually from the turnover of funds is difficult to predict. In the case of warm winter, the administration of such plants and factories lends a considerable amount to Gazprom, and not all benefit from it. If there are abnormal cold weather, then the matter may turn out to be even worse, the declared amount of gas is simply not enough. In this regard, small and medium-sized entrepreneurs closely monitor the end of the economic dispute with Ukraine. In case of cancellation of the Take-or-Pay regime, a legal precedent will emerge , which will also affect their relations with the state gas monopolist.

You have to pay ...

In addition to the important principle of scheduling released and consumed volumes, other advantages of the "take or pay" principle, in general, no. If the country's macroeconomic indicators are good, external debt is small, and the balance of payments is positive, then it is acceptable not only for the seller, but also for the buyer. Another thing is work in conditions of global macrocrysis, when every penny (every billion euros) is in the account. And it's really hard for the country that is waging war. It's not up to Take-or-Pay anymore, when there's simply nothing to pay. Americans invented this principle, but they have another common expression: no money - no drink ("who does not pay, he does not drink"), written on the walls of many bars.