Putin Considers Ukraine’s Proposed Terms For New Gas Transit Contract Economically Unacceptable

Russian President Vladimir Putin considers the conditions that Ukraine proposed for conclusion of a new contract for transit of natural gas from January 1, 2020, economically unacceptable.

This is stated in a report by the Russian agency, TASS, the Ukrainian News Agency reports.

Putin also said that Russia was ready to continue transmission of natural gas on transit through Ukraine.

“I have repeatedly stated that we are ready to preserve Ukrainian transit, and we are currently negotiating this in Vienna. This is not a secret. However, the conditions that Ukrainian transit companies are offering us are possible, but they are not yet economically acceptable to us,” he said.

Putin also expressed the hope that the conditions could be changed during the negotiations.

As Ukrainian News Agency earlier reported, Minister of Energy and Environmental Protection Oleksii Orzhel has expressed the hope that the next round of the Ukraine-Russia-European Union trilateral talks on transit of Russian natural gas through Ukraine will be held on December 5.

The Naftogaz group’s Executive Director Yurii Vitrenko has said that Russia and Ukraine should sign a new transit contract by December 13.

President Volodymyr Zelenskyy and Putin have also discussed the issue of continuation of gas transit through Ukraine and resumption of direct deliveries of Russian gas to Ukraine.

The Naftogaz of Ukraine national joint stock company has stated that it is awaiting proposals from the Russian side before withdrawing its claims for a total of USD 22 billion against Gazprom.

This amount includes almost USD 3 billion awarded by Stockholm arbitration that the Gazprom gas company proposes that Naftogaz of Ukraine ‘nullify,’ a lawsuit for an additional USD 12 billion that it wants Naftogaz of Ukraine to withdraw, and the fine of about USD 7 billion that it wants the Antimonopoly Committee of Ukraine to withdraw.

Orzhel recently stated that Ukraine was interested in direct gas purchases from Russia on market conditions.

Ukraine stated during the Ukraine-Russia-European Union trilateral talks on transit of Russian natural gas that took place on September 19 that it aimed to reach agreement with the European Union and Russia on a 10-year contract for transit of up to 90 billion cubic meters of natural gas per year.

Naftogaz of Ukraine has stated that it is willing to reduce the size of its claim against Gazprom at the Arbitration Institute of the Stockholm Chamber of Commerce from USD 12 billion to USD 2 billion if a long-term contract for transit of Russian natural gas through Ukraine is concluded.

© 2019 UNA

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4 comments

  1. UkrTransNafta and Russia’s Transneft agreed on Tuesday to extend the current contract for transporting oil through Ukraine by another 10 years, until January 1, 2030, the Ukrainian company announced in a press statement.

    The document was signed in Zagreb by UkrTransNafta CEO Mykola Havrylenko and Transneft Vice President Sergey Andronov.

  2. Ukraine MUST revamp its licensing procedures for oil and gas exploration in order to attract companies with the know-how and money to increase the nation’s energy production. When this has been achieved, Poopin and his gas can definitely kiss Ukraine’s asss goodbye.

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