Russian gas monopoly Gazprom said it will pay Ukraine state energy firm Naftogaz an advance of $1 billion in transit fees for gas, Gazprom. “The funds are earmarked for the Ukrainian company to purchase gas from Gazprom to pump into its underground gas-storage facilities. The timely execution of plans to fill the storage facilities with gas is essential for Naftogaz to fulfil its obligations to trans-ship gas to Europe in the winter period without interruption,” Gazprom said in a statement, following a meeting between the heads of the two firms.
Ukraine is the main route for shipments of Russian gas to Europe, its most lucrative market. Gazprom ships more than half of its gas to Europe via Ukraine. This year it aims to increase exports to Europe, where it provides a quarter of gas needs, to 150 billion cubic metres from 138 billion cubic metres last year.
Gazprom said it had paid a total of $5.15 billion in advance payments for transit since the start of 2012. Those payments cover shipments of gas via Ukraine up to the start of 2015, Gazprom said.
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