Moscow to invoice Kiev for reverse gas supplies

Russia will examine the issue of gas supplies to Ukraine from Europe, Russian Energy Minister Alexander Novak said today. "Russia may raise legal claims in connection with the reverse supply of gas to Ukraine from Europe, if it turns out that the reverse is virtual," he says, explaining that now lawyers are studying the issue.

"If it is a virtual reverse, it is certainly illegal, in our opinion. If it is a physical gas reverse, that is,  the flow of natural gas supplies in the opposite direction, then it is, of course, corresponds to the current legislation. Therefore, we believe, this question is not so simple, and lawyers are concerned with it today. It is possible that legal claims will be carried out for separate contracts," RIA Novosti quotes the minister.

According to Novak, despite the decline in consumption of Russian gas, to date, Ukraine still needs it. "Today the Ukrainian economy cannot do without Russian gas," Novak said.

"The purchase of Russian gas and its pumpin underground to gas storage facilities indirectly means a generally reliable supply to Europe. This is our market, and we keep it. For this market to obtain reliable gas in winter, we need now, in summer, to load it. In order to normally survive the winter Ukraine needs about 18-20 billion cubic meters of gas in its underground storage,” he adds.

In addition, among the causes of decline in imports of Russian gas to Ukraine, the minister named warm winters. "If the winters were colder, more delivered gas would probably be supplied. This winter was warm. Let's see how it will be next year," he says.

Novak also drew attention to the fact that the scope of April application by "Naftogaz of Ukraine" for imports of Russian gas is 1 billion cubic meters. "In April Naftogaz requested 1 billion cubic meters of gas," the minister said.

At a press service of the Naftogaz yesterday, it was reported that the company transferred a $30 million advance payment to Gazprom for April delivery of gas on April 2. Gazprom reported that it would receive this prepayment to its account during the day.

On Tuesday, March 31, the so-called "winter package" agreement on Russian gas supplies to Ukraine, signed with the mediation of the European Commission and in force since 1 November 2014, expired. During these five months, Ukraine has bought 2,675,000,000 cubic meters of gas from Russia.

On Wednesday, April 1, Gazprom and Naftoga signed an additional agreement on gas supplies to Ukraine in the second quarter on terms similar to the "winter package". The actual price of Russian gas for Ukraine in the second quarter with a discount of $100 is $247.18 per thousand cubic meters. In a supplementary agreement, the principle of supply on a prepaid basis has also been kept.