UPDATE: Naftogaz Ukrainy to mull Gazprom’s proposal together with EU

(Adds comment in paragraphs 6–7)

KIEV/MOSCOW, Nov 19 (PRIME) -- Ukrainian energy holding Naftogaz Ukrainy plans to discuss Russian gas giant Gazprom’s proposal for prolongation of a natural gas transit contract with the E.U., Executive Director Yury Vitrenko said on Tuesday during the Svoboda Slova show aired on Ukrainian television channel ICTV.

“We hope that work in the trilateral format will continue. We will also discuss Gazprom’s latest proposal in a transparent way in the trilateral format together with the European partners to ensure fair European conditions for prolongation of the transit,” he said.

But Ukrainian Energy Minister Alexei Orzhel said during the TV show that Gazprom’s proposal was unacceptable.

“We received Gazprom’s proposal on Monday. Let’s be frank. The proposal that we have received is unacceptable for Ukraine taking into account that we have to reject all arbitration proceedings and sign a contract only for one year of operation of our gas transportation system,” he said.

He also said that Ukraine was ready to pass the upcoming winter smoothly even without the transit of Russian gas to the E.U.

President Vladimir Putin’s spokesman Dmitry Peskov told reporters separately that the Kremlin sees Ukraine’s claims against Russia over the gas dispute as absurd. “We consider the claims that they make absurd, they are absurd and unacceptable,” he said.

“I cannot add anything to the words spoken by President Putin in Brazil in a news conference. Nothing new has happened. If you remember, he said that there was a risk that we may go into a new year without a corresponding agreement. The president explained why it would be bad,” Peskov said.

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 Monday, 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.

But preconditions for the contracts include abandoning mutual claims in international arbitration and terminating court proceedings, cancelling a fine imposed on Gazprom by Ukraine’s antimonopoly committee, and withdrawing a motion asking the European Commission to launch an investigation against Gazprom.

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