Results of gas transit negotiations between “Naftogaz”, the European Commission and the Russian Federation

On January 21 in Brussels, negotiations were held in a tripartite type: Ukraine - the European Commission - the Russian Federation, on the issue of gas transit through the territory of Ukraine. The current transit contract between “Naftogaz Ukrainy” and PJSC “Gazprom” expires at the end of 2019.

The Head of the NJSC “Naftogaz Ukrainy”, Andrey Kobolev, insists that the contract fully complies with European energy legislation. This will protect the interests of Ukraine in the matter of non-competitive and non-market methods from Russia.

The European Commission fully supports this position, it also noted the progress of Ukraine in the implementation of European legislation on the gas market.

The future contract with PJSC “Gazprom” must fully comply with the decision of the Stockholm arbitration, the Russian side must fulfill its obligations, says Andrey Kobolev.

During the negotiations, Russian representatives refuse to recognize the need to consider the introducing of new gas regulations in Ukraine, when discussing new contracts.

“The Russian side does not even consider the fact that we have a completely different legislation now, other rules, other laws that reflect European legislation and that we have to move from “agreements” to real contracts that will be based on European rules. Russian party and “Gazprom” do not want to consider it, at least at this stage”, stated Klimkin.

The European Commission has submitted its proposals regarding the contract.

"From my point of view, the new contract should be long-term - by 10 plus years. Volumes should be commercially viable, because we have to attract an investor in the organization and upgrade of the Ukrainian GTS. And we would also like it to be European companies with high reputation”, said Shefchovich.

Ukraine and Russia took a pause for a detailed review and study of the proposals of the European Commission. The next meeting is planned to be held this spring.

“We are grateful to the European Commission and personally to Mr. Maros Shefchovich for the proposal said by them. It's nice that we have a common vision of the application of European rules and procedures to the new contract. The proposal of the European Commission will be the starting point for new negotiations on a transit contract, and we will carefully study it and discuss it with our shareholder. Of course, considering the specificity and experience of our relations with “Gazprom”, we see significant risks for such negotiations. But we hope that with the active participation of the European Commission, we will be able to build a contract based on transparent European rules”, said Andrei Kobolev.



Tags: Gazprom, gas, Naftogaz

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