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Letter inked confirming Ukraine's gas transmission system set to operate under EU law

Kiev now has to complete separation of transportation activities from its gas giant Naftogaz under the 3rd energy package of the European Energy Community

Former European Commission’s Vice-President for Energy Union Maros Sefcovic AP Photo/Francisco Seco

Former European Commission’s Vice-President for Energy Union Maros Sefcovic

© AP Photo/Francisco Seco

BRUSSELS, December 27. /TASS/. Former European Commission’s Vice-President for Energy Union Maros Sefcovic has signed a letter that confirms that the Ukrainian gas transmission system is ready to operate in line with the EU legislation.

"Pleased to have sent the letter confirming that Ukraine's newly established gas transmission system operator is unbundled and set to operate in line with EU law," he wrote on his Twitter account on Friday. "That is essential for the uninterrupted transit of Russia's gas to Europe via Ukraine, as agreed in trilateral gas talks," he added.

Pleased to have sent the letter confirming that #Ukraine's newly established gas transmission system operator is unbundled and set to operate in line with EU law. Essential for the uninterrupted transit of #Russia's gas to Europe via Ukraine, as agreed in #TrilateralGasTalks. pic.twitter.com/TmoiLl9utz
— Maroš Šefčovič (@MarosSefcovic) December 27, 2019

Previously Naftogaz exclusively transported and stored gas in Ukraine. However, Kiev has to complete unbundling — separation of transportation activities from Naftogaz — to fulfill obligations under the 3rd energy package of the European Energy Community. The company Gas Transmission System Operator of Ukraine was set up in February 2019 within the framework of the fourth stage of separation from Naftogaz’ structure.

On December 20, Moscow and Kiev announced that a new gas transit contract was agreed for the term of five years, and that mutual settlements between Gazprom and Naftogaz of Ukraine were settled. The parties agreed to waive new mutual claims and withdraw existing mutual claims. Gazprom should pay around $2.9 bln to Naftogaz by the year-end under the decision made by the Stockholm Arbitration. Moreover, an amicable settlement was agreed on antitrust proceedings against Gazprom in Ukraine. The parties also agreed on transit for the next five years and will discuss the possibility of direct gas supplies to Ukraine in 2020.

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