Russia and Ukraine strike gas deal

The head of Gazprom, Alexei Miller, announced that, in accordance with the protocol on gas cooperation, Gazprom and Naftogaz will sign an agreement on the settlement of mutual claims under existing contracts.

The head of the Russian energy company explained that the settlement agreement provides for the refusal of new claims, withdrawal of arbitration and lawsuits in which there are no final decisions and payment according to the final decision of the Stockholm arbitration.

Later, a representative of Gazprom said that the company can pay Ukraine about $ 2.9 bln until December 29, TASS reports.

Miller further noted that Gazprom and the Ukrainian government intend to sign a settlement agreement, according to which the claims of the Antimonopoly Committee of Ukraine (AMCU) will be withdrawn. The claims of the Antimonopoly Committee of Ukraine at the moment amount to about $ 7.4 bln.

The head of Gazprom also drew attention that the parties would consider the possibility of supplying Russian gas to Ukraine with pricing based on the German NCG gas hub.

In accordance with the protocol signed the day before, the price of gas will be formed with the exception of a reasonable discount taking into account the volume of such supplies. At the same time, deliveries will be possible subject to the full implementation of transit agreements.

Recall that earlier, Russian President Vladimir Putin announced that Russian gas for Ukraine would be cheaper than gas for Europe by 20-25%.

Miller noted that the Russian side will sign an inter-operator agreement with the Ukrainian GTS Operator, while Naftogaz will sign a transportation agreement for booking the Ukrainian Gas Transmission System (GTS). Naftogaz will act as the transit organizing company, thereby taking on the risks of the transition period.

"The host company will reserve transport capacities for five years in the amount of 225 bln cubic meters, including 65 bln cubic meters for 2020, 40 bln cubic meters for 2021 and subsequent years, subject to the establishment of a competitive tariff," Miller said noting that the European Commission guarantees compliance with the standards of regulation of gas transportation in Ukraine accepted in the European Union.

Earlier it was reported that yesterday, in Minsk, a protocol was signed between Ukraine and the Russian Federation on gas transit and settlement of claims. Now the energy companies can sign a contract on the transit of Russian gas through Ukraine for five years, the volume of gas transit in 2020 will be 65 bln cubic meters, and in 2021-2024 - 40 bln cubic meters, TASS informs.