You're reading: Naftohaz Ukraine prepared to accept gas as transit fee

The Naftohaz Ukrainy national oil and gas company has said it is prepared to return to a scheme in the relations with Gazprom, when the Russian gas monopolist paid in gas for the services of gas transit to European countries.



The Naftohaz Ukrainy national oil and gas company has said it is prepared to return to a scheme in the relations with Gazprom, when the Russian gas monopolist paid in gas for the services of gas transit to European countries.

Ukrainian News learned this from a statement by Oleh Dubyna, the head of the board of the Naftohaz Ukrainy national oil and gas company, the wording of which was made available to the agency.

According to the statement, the effective documents regulating the relations in the gas sector are agreements ratified by the Verkhovna Rada between the Ukrainian Cabinet of Ministers and the government of Russia of 1994, 2000, and 2001.

In compliance with the terms of the agreement dated October 4, 2001, annual intergovernmental protocols were signed that fixed the volumes of gas transit via Ukraine, the size of the rate, and the terms of payment for transit services in gas supplies and in money.

Taking into consideration that the signing of protocols has not been performed over the past few years, according to the international legal practice, the terms of the protocol for 2005 are considered legitimate. The terms of the protocol for 2005 envisage that 23 billion cubic meters of natural gas are supplied as payment for the transit services and provision of services as redemption by Naftohaz Ukrainy of advance payment of USD 250 million a year (equivalent of 5 billion cubic meters).

As for 2009, the Naftohaz Ukrainy national oil and gas company considers it possible to perform work with these parameters, and starting with 2010 the Ukrainian company is prepared to shift to taking 28-29 billion cubic meters of natural gas a year as payment for the transit services.

The Naftohaz Ukrainy national company considers it necessary, justified and possible returning to this order of work. The company believes that Gazprom is obliged to supply 63 million cubic meters of natural gas a day to Ukrainian consumers in addition to the volumes of gas agreed for supplies to European countries (296.2 million cubic meters of natural gas a day).

Naftohaz Ukrainy is prepared to provide gas transit with taking into consideration commitments on provision of services for advance payment.

Naftohaz Ukrainy is prepared to purchase between 13 billion cubic meters and 23 billion cubic meters from Gazprom to secure the gas balance of Ukraine.

Also, Naftohaz Ukrainy is prepared to purchase natural gas from Gazprom at USD 201 per 1,000 cubic meters with the gas transit rate of at least USD 2 for transportation of 1,000 cubic meters for 100 kilometers, as it was proposed in the joint statement of President Viktor Yuschenko and Prime Minister Yulia Tymoshenko on December 31, 2008.

According to the statement of Dubyna, the Ukrainian-Russian talks continue.

The Ukrainian delegation is prepared to arrive to Moscow any time to sign mutually agreed contracts.

As Ukrainian News earlier reported, on January 1, 2009, Gazprom suspended gas supplies to Ukraine.