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Russia & Ukraine strike last-minute gas transit deal to avoid stoppage of energy supplies to Europe

RT | December 30, 2019

Russian and Ukrainian state energy majors Gazprom and Naftogaz have reached a breakthrough agreement to continue the transit of Russian natural gas to European countries using the Ukrainian pipeline network.

The package deal inked between the Russian company and Ukraine has restored the balance of interests between the parties, Gazprom CEO Alexey Miller said, noting that the Russian energy giant “has made everything possible and has proved one more time that it is a responsible supplier and a reliable partner.”

The agreement will ensure the transit of Russian gas through pipelines on Ukrainian territory for the next five years, Ukrainian President Volodymyr Zelensky has revealed, adding that Kiev is set to receive over $7 billion from Moscow within the deal.

After the current contract expires, the parties will have the option to extend the deal for the next 10 years, Zelensky wrote in a Facebook post late on Monday.

Pursuant to the deal, Ukraine’s Naftogaz will transmit 65 billion cubic meters of Russian gas in 2020 and 40 billion cubic meters annually in the 2021-2024 period, the Ukrainian leader confirmed.

All legal issues that now exist between the two companies have been settled, Gazprom has confirmed in a statement, noting that the parties also agreed not to initiate any lawsuits with respect to the 2009 transit contract that expires in January.

The two sides signed the documents on Monday following a marathon five days of negotiations in Vienna, with the old agreement due to expire on December 31.

Last week, Russia and Ukraine reached an agreement “in principle” to extend the gas contract, and they have been working on the final documents since then. The delegations had to determine how Russia’s Gazprom will cooperate with the Ukrainian operator of the national gas system, and how the transit of the blue fuel will be organized, as well as finalizing an agreement to drop reciprocal claims.

December 30, 2019 - Posted by | Economics | , ,

3 Comments »

  1. Good news to end a bad year all ’round…. Can these be two adults working together?

    (Offhand, I’m puzzled by “…65 billion cubic meters of Russian gas in 2020 and 40 billion cubic meters annually in the 2021-2024 period.” Why the significant decrease?–alternative pipeline(s) coming on line?)

    Like

    roberthstiver's avatar Comment by roberthstiver | December 30, 2019 | Reply

    • Sputnik has more:

      … according to the contract, Gazprom will deliver at least 65 billion cubic meters (over 2 trillion cubic feet) in 2020 and 40 billion cubic meters (1.5 trillion cubic feet) per year thereafter for four more years. The volume of deliveries could be increased.

      Yuriy Vitrenko, executive officer of the Naftogaz Group, said that Gazprom would have to pay for additional volumes of gas in excess of those stipulated in the transit contract.

      “Guaranteed volumes are the minimum and not the maximum that we expect. At the same time, additional volumes with more reservation flexibility will be paid at a higher rate,” Vitrenko wrote on Facebook. …

      https://sputniknews.com/europe/201912311077905121-russia-ukraine-sign-documents-ensuring-gas-transit-starting-from-1-january—miller/

      Like

      aletho's avatar Comment by aletho | December 31, 2019 | Reply

      • Thanks!–appreciated. I opened the link and read.

        I’m cynical enough to be moved to hope that a certain party/ies (ahem) won’t engineer a false-flag attack on the pipeline/infrastructure to sabotage this deal and much more along with it….

        But my cynicism doesn’t preclude me from wishing for a better 2020 for all…HNY (of the Rat)!

        Like

        roberthstiver's avatar Comment by roberthstiver | December 31, 2019 | Reply


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