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Russia proposes Ukraine to resume direct gas supplies

Russian Energy Minister Alexander Novak also said that the EC, Russia and Ukraine agreed to continue consultations on gas in a month

BRUSSELS, September 19. /TASS/. Russia proposed Ukraine to resume direct gas supplies that were halted in November 2015, Russia’s Energy Minister Alexander Novak told journalists following a trilateral meeting on gas with the EU and Ukraine.

"We discussed it today. We suggested to our colleagues and partners that we are ready to directly supply the volumes Ukraine is now importing from Europeans. This can be effective and beneficial to European partners in terms of ensuring the loading of the gas transportation system and transit volumes," he said.

"They [the Ukrainian side] took our proposal for consideration. They are considering both direct deliveries and reverse. It is important for them to understand the volumes and price conditions," he said.

"We did not discuss specific volumes today, since we considered it necessary to agree on the legal framework initially. As for specific volumes, this is the topic of commercial negotiations. They will depend on the volume of gas supplies directly to Ukrainian consumers," Novak said.

The Minister added that in the case of the European legislation is incorporated in the Ukrainian law reservation of capacities will take place in accordance with this legislation, based on applications submit by the companies, including Gazprom.

Russia-Ukraine gas contracts

Since 2009, two contracts have been effective between Gazprom and Naftogaz of Ukraine: on gas supplies to Ukraine and on gas transit through Ukraine to Europe. Both contracts expire at the end of 2019.

In 2012, Naftogaz stopped to take the entire contracted volume of gas, and since November 2015, Kiev has not purchased Russian gas at all, replacing it with reverse gas from Europe. In turn, Gazprom has not supplied the contracted volume of gas through Ukraine. In 2014, Gazprom and Naftogaz began litigation on both contracts.