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Russia-Ukraine gas dispute

Ukraine expects to receive about $2 bln for gas transit from Russia in 2020

On December 21, it became known that Russia and Ukraine are to sign a new five-year transit agreement by December 29

© Valery Sharifulin/TASS

KIEV, December 24. /TASS/. Ukraine expects to receive about $2 bln for the transit of Russian gas in 2020, Andrey Gerus, head of Verkhovna Rada’s Committee on Energy and Housing and Utilities Services, said on Tuesday. Verkhovna Rada is Ukraine’s parliament.

"This [reaching transit agreement] is important for Ukraine, because next year we will be able to receive about $2 billion for gas transit," he told reporters after a meeting of the Council of Communities and Territories.

On December 21, it became known that Russia and Ukraine are to sign a new five-year transit agreement by December 29. Minimal transit amount will be 65 billion cubic meters in 2020, while 40 billion cubic meters will be transited in 2021-2024 annually.

Read also

Russian deputy PM dubs Russia-Ukraine gas deal as ‘vent window of opportunity’

However, the package deal does not stipulate direct supplies of Russian gas to Ukraine.

Ukrainian Energy Ministry Aleksey Orzhel said earlier, the tariff for the transit of Russian gas through Ukrainian territory will be increased. However, he did not name the transit rate, which will be effective from January 1, 2020.

The Ukrainian regulator was supposed to name the gas transit tariff until December 26.

In 2019, the tariff for the transit of Russian gas to the EU was $2.61 per 1,000 cubic meters of gas per 100 km of the Ukrainian gas transportation system.

Earlier, Ukraine received about $3 billion a year from transit of Russian gas. However, the transit volumes were much larger than those planned for 2020. For example, in 2018, gas transit amounted to 86,774 bln cubic meters, and in 2017 Ukraine transported record volumes of gas for the last few years — 93 bln cubic meters — to the European Union.

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Russia-Ukraine Gas Dispute

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