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Russia-Ukraine gas dispute

Naftogaz says Gazprom’s extra $10.5 million payment for transit in July erroneous

Despite Naftogaz’s enormous debt to Gazprom for natural gas supplies, the Russian gas company made an additional payment to honor its contractual obligations as a reliable supplier and partner

© EPA/DARIUSZ DELMANOWICZ

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Ukraine hopes to cover over half of gas needs through EU reverse — energy minister

KIEV, August 21. /ITAR-TASS/. The Ukrainian national energy company Naftogaz considers as “erroneous” Gazprom’s additional $10.54 million payment for the July gas transit, the Naftogaz press office said on Thursday.

“We consider this payment as erroneous and are currently sorting out this issue,” the Naftogaz press office said, adding the company would shortly provide detailed information.

Gazprom spokesman Sergei Kupriyanov said on Thursday that the Russian energy giant had paid an additional $10.54 million for Europe-bound gas transit via Ukraine in July. Gazprom made advance payments to Naftogaz in 2012-2013 to ensure natural gas transit via Ukraine until mid-2014, including a partial payment for July.

Despite Naftogaz’s enormous debt to Gazprom for natural gas supplies and the absence of certificates for the delivery/acceptance of gas transit services and the corresponding invoices, the Russian gas company made an additional payment to settle its July gas transit bill and honor its contractual obligations as a reliable supplier and partner, the spokesman said.

Gazprom expects Naftogaz to repay its debt for natural gas supplies and ensure unrestricted gas transit across Ukraine, the Gazprom spokesman said.

Ukraine’s Naftogaz stopped paying for Russian natural gas supplies from March 25, 2014. Naftogaz’s debt to Gazprom for natural gas supplied to Ukraine totaled about $5.296 billion as of August 1, 2014 (excluding debts under “take or pay” contractual obligations), including $1.451 billion owed for supplies in November-December 2013 and about $3.845 billion for April-June 2014.

Gas transit via Ukraine

The throughput capacity of the Ukrainian gas transportation is 288 billion cubic meters at the entrance and 178.5 billion cubic meters at the exit, including 142.5 billion cubic meters to European countries and 3.5 billion cubic meters to Moldova.

Ukraine’s gas transportation system consists of 72 compressor stations, 110 production shops and 1,451 gas distribution stations. The overall length of gas pipelines operated by the company is 38,600 kilometers, including 22,200 kilometers of trunk pipelines and 16,400 kilometers of extensions.

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Ukraine Oil & Gas Naftogaz Gazprom Russia-Ukraine Gas Dispute

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