Ukraine presents new gas transit contract to Russia and EU

At the recent trilateral negotiations, Ukraine presented a draft of the new gas transit contract to the EU and Russia, said Ukrainian Energy Minister Oleksiy Orzhel, as cited by Ukrainski Novyny news agency.

“Ukraine presented draft contracts to the parties. It’s a roadmap of how, by January 1 next year, we will obtain an independent certified operator, a draft interconnector contract, and a draft transit contract,” Orzhel told the press after the meeting.

The minister emphasized that Ukraine intends to actively move towards the signing of a contract in complete accordance with European standards. He also considered it possible that the agreement might not be signed. The transit quantities and duration of the contract will be discussed at the next round of negotiations.

The minister also said that Russia had confirmed its willingness to operate according to European regulations in the context of the new contract.

“The European party confirmed that it will collaborate with and support Ukraine in necessary actions relating to the certification of the gas transport system, and the Russian party confirmed that it is willing to operate according to the European rules,” he said.

On January 1, 2020, the 10-year transit contract between Naftogaz of Ukraine and Russia’s Gazprom will expire. Recently Gazprom has not been actively pursuing a new contract, and has instead been focusing on its Nord Stream 2 and Turkish Stream gas pipeline projects.

Ukraine hopes to sign a 10-year contract to transport 90 billion cubic meters of Russian gas to the EU every year. Naftogaz is prepared to reduce its legal claims against Gazprom from $12 billion to $2 billion if such a long-term contract is signed.

Recently it was reported that Russia had offered to sign a short-term transit contract with Ukraine.

  Gazprom, Naftogarz, EU