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Russia-Ukraine gas dispute

Naftogaz hails new contract with Gazprom as ‘advantageous’ for Ukraine

Russia's gas major will pay for the reserved capacity, and not for the amount of gas actually received during transit to Europe, according to Naftogaz CEO

© EPA/ROMAN PILIPEY

KIEV, January 9. /TASS/. Ukraine is satisfied with the terms of the new gas contract with Gazprom and regards it as the most advantageous in the history of the country’s independence, Executive Director of Naftogaz of Ukraine Yury Vitrenko told a press conference on Thursday.

Read also

Contract on Russian gas transit via Ukraine stipulates ‘pump or pay’ principle - Naftogaz

"The terms of the agreement are advantageous for Ukraine, because for the first time in the history of Ukraine’s independence, we have a contract with guarantees of clearly determined reserve capacities, for which they [Gazprom — TASS] must pay regardless of whether they use them or not," Vitrenko explained.

He also added that the Russian company will pay for the reserved capacity, and not for the amount of gas actually received during transit to Europe.

"Despite the fact that the system was not fully loaded and the volumes were not very significant, Gazprom will pay for all volumes that were reserved," Vitrenko said.

Transit contract

Ukraine is not in talks with Russian gas giant Gazprom on direct gas supplies, Executive Director of Naftogaz Yury Vitrenko commented on Thursday.

The gas transit contract between Ukraine and Russia will be adjusted in case of changes in European law, Vitrenko pointed out. "There are no new agreements [on direct gas supplies from Russia to Ukraine] or negotiations. There is no talk on the part of Naftogaz about direct supplies," Vitrenko said.

He added that this process is not prohibited by law. "But there are no legislative restrictions for all users of the system to come to the operator and reserve capacities," he admitted.

"The contract contains conditions that, in case of changes in European rules, it should be adjusted to this changed European rules. This way <…> this contract will continue to fully comply with European rules," Vitrenko noted.

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Russia-Ukraine Gas Dispute

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