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Economy 2019-12-10T04:02:52+02:00
Ukrainian news
Gazprom Sends Proposal To Extend Current Gas Transit Contract By 1 Year To Naftogaz

Gazprom Sends Proposal To Extend Current Gas Transit Contract By 1 Year To Naftogaz

Gazprom, Naftogaz, gas transit, Russia, gas

The Gazprom gas company (Russia) has sent a proposal to extend the current contract for transit of Russian natural gas by one year to the Naftogaz of Ukraine national energy company.

This was reported by the Russian news agency, TASS, the Ukrainian News Agency reports.

According to the report, as an alternative, Gazprom proposed concluding a new contract for transit of Russian gas through Ukraine for one year, taking account of the projected demand from European buyers in 2020.

“The Gazprom proposal stated that the necessary conditions for extending the current contract or concluding a new contract are: withdrawal of all international arbitration claims by both parties, termination of all legal proceedings, cancellation of the Antimonopoly Committee of Ukraine’s decision to fine Gazprom for alleged ‘violation of economic competition,’ and withdrawal of Naftogaz of Ukraine’s petition to initiate an investigation against Gazprom by the European Commission,” Gazprom’s press service is quoted as saying in a statement.

In addition, according to the report, Gazprom is waiting for the Ukrainian side’s position regarding its readiness to purchase Russian gas directly from 2020.

As Ukrainian News Agency earlier reported, Naftogaz of Ukraine’s Board Chairman Andrii Kobolev recently said that Gazprom was not considering the possibility of concluding a new transit contract.

Naftogaz of Ukraine has stated that it is awaiting proposals from the Russian side before withdrawing its claims for a total of USD 22 billion against Gazprom.

This amount includes almost USD 3 billion awarded by Stockholm arbitration that the Gazprom gas company proposes that Naftogaz of Ukraine ‘nullify,’ a lawsuit for an additional USD 12 billion that it wants Naftogaz of Ukraine to withdraw, and the fine of about USD 7 billion that it wants the Antimonopoly Committee of Ukraine to withdraw.

According to Naftogaz of Ukraine, extension of the current gas transit contract between the company and Gazprom was not discussed during the trilateral talks on transit of natural gas in Brussels (Belgium) on October 28.

Russia raised the issue of direct gas supplies to Ukrainian customers during the recent Ukraine-Russia-European Union trilateral talks on transit of Russian natural gas, which took place on September 19.

Ukraine stated during the trilateral talks that it aimed to reach agreement with the European Union and Russia on a 10-year contract for transit of up to 90 billion cubic meters of natural gas per year.

Naftogaz of Ukraine has stated that it is willing to reduce the size of its claim against Gazprom at the Arbitration Institute of the Stockholm Chamber of Commerce from USD 12 billion to USD 2 billion if a long-term contract for transit of Russian natural gas through Ukraine is concluded.

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