PM Honcharuk: Ukraine to demand that Russia sign long-term gas transit contract

The bill on GTS unbundling passed by the Vekhovna Rada further strengthens the country's position in talks.

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Ukrainian Prime Minister Oleksiy Honcharuk says the government, in talks with Russia on gas transit from January 1, 2020, will demand the conclusion of a long-term contract with transit guarantees in an amount sufficient to service the domestic gas transmission system (GTS).

"We all see how it goes when we reach an agreement with them [Russia] on the signing [of the contract]. But now we adhere to Ukrainian interests, which means that we will require a long-term contract, rather than that for 12 months. We will also demand sufficient guarantees for [gas] transit so that we can maintain the [Ukrainian] gas transmission system," he said during a Q&A hour at the Verkhovna Rada on Nov 1.

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According to Honcharuk, it is impossible to say exactly when the contract will be signed. However, the passing of a bill by the Verkhovna Rada on Oct 31, which provides for the unbundling of the GTS from NJSC Naftogaz of Ukraine, further strengthens the country's position.

"We are doing our best so that the contract is signed as soon as possible. Thank you, dear deputies, for yesterday's vote in favor of the important [draft] law on the Naftogaz unbundling. This brings us closer to the goal. Our regulator [the GTS Operator] will be working in line with European rules, which gives us the opportunity to appeal to our European partners and allies and speak in one voice in the negotiations," he added.

As UNIAN reported earlier, on October 31, the Verkhovna Rada passed the bill on the unbundling of the gas transmission system from Naftogaz with the GTS remaining wholly owned by the state.

On October 28 in Brussels, trilateral negotiations were held on gas transit via the territory of Ukraine after January 1, 2020. The previous meeting took place on September 19.

The negotiations were focused on the following: how to reflect EU energy rules in a future framework agreement; the proper duration of the future contract; necessary volumes with possible variability; and gas transit rates.

Russia's gas giant Gazprom in the course of talks on September 19 for the first time allowed the possibility of concluding a contract in line with European rules from January 1, 2020, if they are fully implemented in Ukraine before the end of this year.

UNIAN memo. The current transit contract between Ukraine and Russia's Gazprom was signed in 2009 for a period of 10 years. Once it expires (from 2020), the Russian monopoly plans to minimize gas transit through the Ukrainian territory.

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