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Economy 2019-03-15T05:45:16+02:00
Ukrainian news
Naftogaz Not Intending To Purchase Natural Gas From Gazprom Without Additional Agreement

Naftogaz Not Intending To Purchase Natural Gas From Gazprom Without Additional Agreement

The Naftogaz of Ukraine national joint stock company says it is not intending to purchase natural gas from Gazprom until the end of the heating season without signing an addendum to the existing natural gas purchase contract.

Naftogaz CEO Andrii Kobolev announced this at a press conference, Ukrainian News Agency reports.

"And we will be waiting for a decision of the Stockholm Arbitration," he said.

Ukraine has not been buying natural gas from Gazprom since November 25, 2015.

The Naftogaz of Ukraine national joint-stock company believes that Russia's gas monopoly Gazprom on political motives refused from signing an addendum to the existing natural gas purchase contract after the trilateral talks in Brussels, Belgium, on December 9.

The Ministry of Energy of the Russian Federation does not deem advisable and unsupports signature of addendums to the existing natural gas purchase contract between Naftogaz of Ukraine national joint-stock company and Russia's gas monopoly Gazprom of 2009 until it expires (till 2020).

The Naftogaz of Ukraine national joint stock company is demanding from Gazprom at the Arbitration Institute of the Stockholm Chamber of Commerce compensation of USD 18.1 billion on the contract for purchase/sale of natural gas and USD 10.2 billion on the natural gas transit contract.

Yurii Vytrenko, chief commercial director of Naftogaz, announced this at a press conference, Ukrainian News Agency reports.

"We consider that we had a contractual right for revision of the price, in violation of the [purchase/sale] contract Gazprom did not satisfy the respective demand to revise the price. Thus, starting with a certain date we overpaid for the gas," he said.

He noted that Gazprom demands from Naftogaz USD 38.8 billion of compensation under the the contract for purchase/sale of natural gas. The most of the sum concerns the "take or pay" principle.

Naftogaz believes that it had the right to reduce the volume of natural gas annually regarding the "take or pay" principle, but Gazprom denied Naftogaz this right.

As Ukrainian News Agency earlier reported, President of Ukraine Petro Poroshenko expects the Arbitration Institute of the Stockholm Chamber of Commerce to make a decision in favor of the Naftogaz of Ukraine national energy company in its dispute with the Gazprom company (Russia) over the 2009 contract for purchase/sale of natural gas in March 2017.

Naftogaz expects the Arbitration Institute of the Stockholm Chamber of Commerce to make a decision on the contractual dispute in the first quarter of 2017.

In this dispute, Naftogaz of Ukraine is demanding about USD 18.2 billion from Gazprom, of which USD 14.1 billion is compensation for overpayment for gas during the period from 20 May 2011 to October 2015.

In addition, Naftogaz of Ukraine is demanding revision of the contractual price for gas.

Gazprom is also demanding a total USD 38.7 billion from Naftogaz of Ukraine, including a penalty of USD 29.2 billion for violating the "take or pay" principle.

Больше новостей о: Russia Ukraine gas Naftogaz Gazprom Kobolev Stockholm Arbitration

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