Gas war: Naftogaz demands compensation from Gazprom for gas imported from EU amid brief energy crisis

Naftogaz Chief Commercial Officer Yuriy Vitrenko says Russia's gas monopoly Gazprom shall compensate Ukraine for 34% of the cost of gas imported from the European Union countries to overcome fuel shortage in Ukraine's gas transmission system (GTS), which was caused by Gazprom's unlawful moves.

"Some 34% of the sum overpaid for gas imported in March will be compensated for by Gazprom, rather than by Ukrainians. I would like to remind you that Gazprom, in an insidious move, without warning amid abnormally cold weather, refused to fulfill its contractual obligations on gas supplies. Although before that, Gazprom had issued an invoice for March, which Naftogaz paid in full," Vitrenko wrote on Facebook on March 5.

He noted that Gazprom had already been officially warned it should pay compensation to the Ukrainian side for their non-fulfillment of contractual obligations.

Read alsoGas crisis: Ukrainian gas stocks shrink to 9.642 bcm within week"Now Gazprom will pay us compensation for the failure to fulfill its contractual obligations on gas supplies in March, which he was officially warned about. According to operational data, this year's average weighted price of gas from European suppliers in March exceeded the price of gas from Gazprom (after cutting it under the award of the Stockholm Arbitration) by 33.9%. The sum overpaid will be presented to Gazprom as a bill to be compensated," Vitrenko added.

As UNIAN reported, March 3, Ukrainian President Petro Poroshenko said that Ukraine in March was supposed to receive natural gas under a contract with Gazprom at a price of $238.55 per 1,000 cubic meters. However, because of Gazprom's demarche, Naftogaz had to buy gas on the spot market prices ranged from $250-300 to $500 per 1,000 cubic meters.

Poroshenko has stressed that Russia's Gazprom shall compensate for the losses.

Russia's gas monopoly Gazprom has lost a litigation with NJSC Naftogaz of Ukraine in the Stockholm Arbitration, which ruled that Gazprom pay $2.56 billion to the Ukrainian company. At first, Gazprom agreed to supply 0.5 bcm of gas to Ukraine in March at prices determined by the arbitration. However, it suddenly refused to fulfill its contractual obligations and reduced the gas pressure at the entry point to Ukraine's GTS at the eastern border to a critical 50.6 kgf/sq. cm.

Read alsoPoroshenko says situation with gas supply in Ukraine stable (Video)Naftogaz says Gazprom's failure to fulfill the court's decision has led to the gas shortage in the GTS. To tackle the crisis, the Cabinet of Ministers of Ukraine imposed restrictions on domestic gas consumption, while Naftogaz went for an emergency purchase of 60 mcm of gas from Poland's PGNiG.

According to Poroshenko, thanks to the efforts by Naftogaz and the Cabinet of Ministers, the country will complete the heating period without any emergencies. He also stressed that Gazprom would pay "every single penny" under the Stockholm Arbitration's award.

Poroshenko assured that the situation with gas supplies had stabilized as of March 3.