Naftogaz invites Gazprom for transit talks

Naftogaz Ukraine (NAK) has suggested that Russian Gazprom should negotiate terms for the future transit of Russian gas to the EU in a trilateral format organized by the European Commission, reported Interfax-Ukraine, citing NAK’s press service.

"We suggest that Mr. Miller discuss this issue at the talks initiated by the European Commission," the message said.

Earlier, Gazprom Deputy Chairman Alexander Medvedev said that he did not understand who on the Ukrainian side was in charge of negotiations on the issue.

Russian media reported that Naftogaz Ukraine sent Gazprom its proposals for the terms of Russian gas transit in 2020-2028, after the expiration of the current transit contract with Gazprom.

Ukraine and the European Union have already agreed to begin tripartite negotiations on the transit of gas to European consumers from Russia.

Gazprom previously said that it may continue transiting gas through Ukraine at a reduced amount of 10-15 billion cubic meters per year if the Ukrainian side proves the economic viability of the new contract.

The Deputy Chairman of Gazprom's board, Alexander Medvedev, said at the end of March that Gazprom and Naftogaz had begun negotiations on the termination of contracts for the supply and transit of gas.

Naftogaz noted that Gazprom continues to refuse to implement the final and binding decision of the arbitrators in two commercial disputes with Naftogaz, instead proposing to change the contracts or break them - thus cancelling the decision of the tribunal.

On February 28, the Stockholm Arbitration Court satisfied Naftogaz's claims for compensation for transit gas volumes that had not been supplied by Gazprom.

In the Arbitration Court’s decision, Naftogaz received compensation in the amount of $4.63 billion for Gazprom's failure to supply agreed-upon volumes of gas for transit. Based on the results of the two arbitration proceedings in Stockholm, Gazprom will pay a total of $2.56 billion to Naftogaz.

  Naftogaz, Gazprom, gas trasit through Ukraine