Gazprom not able to suspend gas transit through Ukraine yet

Despite its statement about the termination of all contracts with Ukraine, Gazprom will not suspend gas transit through Ukraine in the near future, according to a statement made by Gazprom’s Spokesperson, Sergey Kupriyanov, reports RBC news agency.

“If it was any other way, we would say that openly,” said Kupriyanov when asked if the beginning of the Gazprom-Naftogaz contract termination procedure at the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) would bring an immediate termination of gas transit through Ukraine.

A well-informed source in the trading subsidiary of Gazprom also confirmed to RBC news agency that the transit of Russian gas through Ukraine will continue because certain legal processes have to be followed to terminate the contract.

“Legal proceedings usually take a lot of time. We aren’t suspending the gas transit through Ukraine at the moment,” said the source.

 According to the agency, Gazprom’s transit contract itself does not provide for the immediate suspension of the transit should the agreement be terminated.

“Should the parties be not able to come to an agreement within 30 days from the moment of a dispute, any dispute or claim shall be finally settled through arbitration procedure in compliance with the regulations of the SCC pursuant to this contract or its violation, termination, or voidance,” the agreement reads. 

As earlier reported, Gazprom has initiated the termination of the gas supply and transit contracts with Naftogaz of Ukraine.

  Gazprom, Naftogaz, Stockholm Arbitration Court, Ukraine, Russia

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