Naftogaz Ukrainy says 1-year gas transit contract possible

KIEV, Nov 25 (PRIME) – Ukraine can sign a one-year gas contract with Russia, like Gazprom offered, but it should be discussed with the E.U., Naftogaz Ukrainy’s Executive Director Yury Vitrenko said on Monday on his Facebook page.

“Naftogaz has sent a response to Gazprom on its proposal. The response says that the sides should continue discussions on prolongation of transit under the European rules in a trilateral format with participation of the European Commission,” he said.

The company thinks that a one-year contract is possible, if it complies with the European legislation.

“If Gazprom sees its proposal as an option for an emergency, i.e. if Gazprom fails to sign a long-term transit contract, this option should still comply with the Ukrainian legislation and the European rules,” he said, adding that the Ukrainian company saw no legitimate reasons that would block signing of a new transit contract.

Ukraine’s introduction of European rules and legislation is going on in accordance with the schedule, so it will certify a new operator of the gas transportation system in the country until the end of 2019, which would allow for signing of a new contract, he said.

He also said that Naftogaz Ukrainy would be satisfied if Gazprom repays its $3 billion debt that the company has to redeem to the Ukrainian holding under a ruling of the Stockholm arbitration court, in kind.

Settlements of existing and new arbitration proceedings between the two companies, a recall of a complaint of Naftogaz Ukrainy to the E.U. antimonopoly authority against the Russian company, and cancellation of an antimonopoly fine imposed by the Ukrainian authority on the company should not be preconditions for continuation of transit, he added.

Ukraine stopped direct purchases of Russian gas in 2015. The current gas supply and transit contracts between the countries expire at the end of 2019.

On November 18, Gazprom sent an official proposal to Naftogaz Ukrainy to prolong the existing contract on gas transit or to sign a new transit contract for one year taking into account the forecast for gas demand in the E.U.

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