Gas market

Ukraine and Russia agreed on gas supplies until April

Ukraine and Russia agreed on gas supplies until April
Photo: Reuters

On the night of October 30, Ukraine, Russia and European Union have approved a legally binding treaty on gas supplies until the end of March, 2015.

Energy Ministers of Ukraine and Russia Yuriy Prodan and Alexander Novak, and also European Commissioner for Energy Gunther Oettinger signed the document in the presence of the President of the European Commission Jose Manuel Barroso.

Ukraine is planning to purchase around 4 bn cu m of Russian natural gas until the end of the year, said the Ukrainian minister at the press conference on gas in Brussels.

In his turn, Oettinger informed that Ukraine will receive funds from EU and International Monetary Fund to repay all debts for gas, adding that the special program was prepared for this.

In addition, Naftogaz of Ukraine and Russian gas monopolist Gazprom agreed on daily volumes of gas supplies in signed additional agreement of the treaty under prepayment.

“All technical issues of our relationship in the period from November to March were settled in the so called technical agreement between Naftogaz and Gazprom. The approved mechanism clearly shows how the repayments will be made and how daily consumed volumes of gas will be supplied. We believe that Naftogaz and Gazprom will cooperate and provide gas for all consumers of Ukraine and reliable transit of gas to the EU countries after signing the agreement,” noted Prodan.

The Ukrainian minister also reminded that, according to the reached agreements, gas supplies to Ukraine will be renewed after the transfer of the first tranche for earlier supplied Russian gas in the amount of US $1.45 bn (debt for November-December, 2013) and after prepayment for those volumes of gas which will be announced by Naftogaz.

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