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.

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  1. 112 still pushing the Kremlin narrative. Ukraine have had “cheap” Russian gas before, they managed without it for 5 years, I reckon they can survive a bit longer.Ukraine don’t need Russian gas, but Russia need gas transit through Ukraine until Nord Stream is online. Ukraine have Russia just where they want them. Tell Muscovy to shove their gas up their ass, then we’ll hear the whining from Macron & co.

  2. It is highly damaging to Ukraine and its image in the world, that it continues to do business as normal with the occupying putinazi regime. There should be no embassy, no consul, no trade, no travel and no putlerstani companies operating in Ukraine. Why should any country make sacrifices for Ukraine if it still wants to do business with putler’s stinking fascist junta? Close the border and kick out Sberbank, first sequestrating its assets.

    • Yeah, a very bad taste. They make things look as if nothing happened. As if 12k people dead, 3 mio people ethnically cleansed away, invasions and annexations and the downing of MH-17 were just a minor dispute of no bigger significance. Bah and burp!

      • Good point Mike. We also know that a contract with the Misfits today could be void tomorrow and if it goes to court they won’t recognize the decision. It’s like a promise from a 3-year old. A long term transit contract cosigned by the EU is probably the best Ukraine can do. That and get the LNG terminals up and running in Odesa asap.

  3. The bribery begins, to ensure gas transit through Ukraine until the Nord Stream 2 pipe is welded and bolted into place and commisioning is complete. Then the price will go up substatially or be cut off.
    I expect the talking bobbleheads and lemmings of Europe will push to go along with this shiit to cover their weasel arses.

What is your opinion?