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Extension of gas transit agreement with Ukraine is possible for transition period

Currently, Ukraine is introducing the provisions of the third EU energy package into its legislation

MOSCOW, October 9. /TASS/. Gas transit agreement between Russia and Ukraine which expires in the end of this year can be extended for the transition period (of Ukraine’s introducing EU norms into its legislation), according to a statement by Russian gas holding Gazprom.

Gazprom CEO Alexey Miller and Georg Graf Waldersee, German Federal Government Commissioner for gas transmission through Ukraine discussed Russian gas supplies to non-CIS countries from January 1, 2020 at a working meeting in Moscow on Wednesday.

Currently, Ukraine is introducing the provisions of the third EU energy package into its legislation. In particular, this is implies independence of the national regulator in the energy sector and creation of a certified independent gas transmission operator.

At the meeting, it was noted that the proper certification and licensing procedures by the operator requires careful preparation and takes a long time. Moreover, the economically sound and transparent methodology of tariff formation for gas transportation for an independent operator has not yet been approved.

"If this comprehensive work is not completed by January 1, 2020, the only option for cooperation for the transition period is to extend the current gas transit agreement, adapted to current market conditions," the report says.

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