Russian Gazprom ready to provide Ukraine with 25% discount on gas
In this case, sides should agree transit through Ukrainian gas transportation system
Russian Gazprom could confirm its offer for direct deliveries with a discount of 25% during the trilateral gas talks. This was stated by the head of the company Alexei Miller at a meeting with Russian President Vladimir Putin, according to the Russian President’s website.
Miller said that the priority issue will be the supply of Russian gas directly to Ukraine. At the same time, Putin emphasized the need for a transit contract through the Ukrainian GTS (gas transportation system).
“In the case of concluding a direct gas supply agreement with Gazprom, the price of gas for the final consumer in Ukraine may be 25% lower than the current level,” Miller added.
The gas transit and supply contracts concluded between Russia and Ukraine ten years ago expire at the end of 2019. According to these agreements, Kyiv was given a 20% discount on the average European price, while Ukraine pledged to keep the transit rate at $ 1,7 per 100 km. Subsequently, Kyiv considered the price unfair and completely refused to purchase Russian gas; contract disputes between Gazprom and Naftogaz have been ongoing since 2014.
Earlier, the head of Gazprom Alexei Miller said that before the end of the year they might not be able to sign a new gas contract. At the same time, according to him, Gazprom is ready to extend the transit contract. Naftogaz said that in the absence of a transit contract by Gazprom from January 1, 2020, Ukraine could offer the Russian company a backup option – a gas swap.
The trilateral talks on the supplies and transit of the Russian gas through Ukraine to the EU will take place on September 19 in Brussels, as Radio Liberty correspondent Rikard Jozwiak reported on Twitter.
“According to sources, the gas trialogue between the European Commission, Ukraine, and Russia in Brussels will take place on September 19,” Jozwiak wrote.
Earlier the Ukrainian side stated it was ready to participate in the trilateral negotiations on Russian gas supply and transit through Ukraine to the EU in September 2019.