Gas Transit Through Ukraine – Result: Checkmate in a Month

  1. The hearing was 40 minutes.
  2. Negotiations will continue only in a month, i.e., at the end of October, when it is already cold in Ukraine.
  3. No contract with Kiev will exist neither on terms nor on the guaranteed pumping volumes.
  4. Gazprom will wait for the unbundling – the division of Naftogaz into the seller of gas and the transport company – and will pump gas in volumes that will be bought by consumers from Europe, and Ukraine will be obliged under European legislation to obey and ensure transit, and each time it will be a one-time transaction.
  5. The consumption of Russian gas by Ukraine will be under the same conditions, provided that another, more favourable proposal isn’t offered to Gazprom.
  6. Naftogaz and Gazprom will remain in court, but Naftogaz itself will be disbanded by the end of the year and the big question is: who will be its successor in court.
  7. Gazprom isn’t going to discuss any $14 billion compensation.

Ministry of Energy of the Russian Federation Aleksandr Novak:

“Today we had a discussion and proposed to our colleagues and partners that we are ready to deliver the imports that are made by Ukraine today from the Europeans directly, and this really can be effective and beneficial to our European partners in terms of ensuring the loading of the gas transportation system and transit volumes”.

“(Ukrainians) took note and asked for time to study this issue. First and foremost, of course, economic effect and efficiency are important for them. Actually, we are ready to show this efficiency to them – that it is more profitable to buy gas directly”.

“We didn’t discuss today specific volumes, as we considered it necessary to agree initially about the legal framework. Concerning specific volumes – it is a subject of commercial negotiations. They will depend on the volumes of gas supply directly to Ukrainian consumers”.

Minister Novak added that in the case of the implementation of European legislation, the Ukrainian capacity reservation will be in accordance with this legislation, proceeding from orders that will be submitted by the organisations, including “Gazprom”.

Marat Basharov

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