Gas transit to be – Orzhel

Minister of Energy and Environmental Protection Oleksiy Orzhel at a briefing on the results of a trilateral agreement on gas transit to Europe said that there will be transit of Russian gas through Ukraine. Naftogaz will also receive $3 billion by decision of the Stockholm arbitration.

What is very important – there will be transit. These values, fixed in the decision of the Stockholm arbitration, will be paid in cash and will be paid if we realize all the package positions, before the new year, the Minister said.

Ukraine, directly NJSC Naftogaz, will receive by decision of Stockholm $3 billion (more precisely, no more than 2.9 billion) in accordance with the agreements that are now in place.

The contract provides for transit for 5 years with the possibility of extension on those conditions that are now provided for the first 5 years, for another 10 years. It provides for work and methodology according to European rules.

He also noted that all solutions are packaged.

Volumes that are fixed, minimally guaranteed for transit. Namely: the first year - 65 billion cubic meters, and 40 billion cubic meters for the next four years. There is also a certain increase in the tariff for transportation, which the National Energy and Utilities Regulatory Commission should determine.

The package decision provides for a review of positions regarding future arbitrations.

"An important point: we are regulating the issues of future arbitrations. This is a potential win-win. However, we already have a vision regarding what arrangements are in place for transit. Therefore, in this case, the package decision provides for a review of positions regarding future arbitrations. The decision on $3 billion is clearly defined, and the decision on other arbitrations will be withdrawn directly within the package”, said Orzhel.

According to Yury Vitrenko, Executive Director of Naftogaz of Ukraine, the representatives of the European Union, Ukraine and the Russian Federation determined the basic principles of those agreements that should be concluded between business entities, including between Naftogaz, Gazprom and the Ukrainian GTS Operator .

He noted that the parties, according to European rules, will also be able to book the capacities of the Ukrainian gas transportation system for a shorter period: for a year, for a quarter, for a month, even a day in advance. Thus, the Ukrainian market will be able to integrate even more into the European market.

The contract also does not provide for direct deliveries of Russian gas.

“The protocol indicates the possibility that the parties - Ukraine, the Russian Federation and the EU - will consider the issue of gas supplies, but this is not part of the package. There are no agreements on gas supplies - direct or indirect - in this protocol”, Vitrenko emphasized.

The protocol of the meeting of representatives of the European Union, Ukraine and the Russian Federation, as well as companies of these countries (Gas Transmission System Operator of Ukraine LLC, NJSC Naftogaz of Ukraine, PJSC Gazprom) was posted on the website of the Cabinet of Ministers.




Tags: The Cabinet of Ministers, Gazprom, gas, Naftogaz, contracts, Stockholm arbitration, legislation, EU, The Minystry of Energy and Coal Mining, The European Commission, Top management, gas transit, GTS, RF, sanctions, foreign affairs, Orzhel, Vitrenko, pipeline, agreement, gas supplies, volumes

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