Naftogaz responds to Putin's gas offer

Russian gas should be 20-25% cheaper than gas delivered from Europe anyway, since Gazprom in its direct deliveries doesn't pay for its transmission to the EU.

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Executive Director of Naftogaz NJSC Yuriy Vitrenko believes that the Russian gas price offered to be set 20-25% lower than that for gas delivered from the EU is not a "discount" as Vladimir Putin puts it.

That's since Gazprom doesn't pay for its transmission to the EU when delivering it directly to Ukraine, Vitrenko wrote on Facebook, commenting on Putin's statement voiced at the BRICS summit in Brazil.

"Gas from Russia should be 20-25 percent cheaper than gas delivered from Europe anyway since Gazprom does not pay for direct deliveries to Europe," he wrote.

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At the same time, Vitrenko noted: "These 20-25 percent are not a discount – this is a normal price, while the consequence may be a decrease in Ukraine's profit from transit."

According to him, since gas is supplied to Europe through Ukraine, in direct deliveries to Ukraine the Russian monopoly supplies less gas for transit to Europe, respectively, they pay less for gas transit to Ukraine.

Naftogaz top manager emphasized that a 20-25% discount, given future gas imports, would not be able to realistically compensate for Ukraine's refusal from $3 billion Gazprom has to pay off in line with the award of the Stockholm arbitration.

"I'd note that we have the opportunity to have such a 'normal' price if, for example, the European antitrust authority makes sure that Gazprom does not abuse its dominant position in the European market. For example, if the opportunity for other companies to receive gas on the Russian border is unlocked," he added.

As UNIAN reported earlier, at a press conference in Brazil earlier today, Russian President Vladimir Putin allowed the termination of gas transit via Ukraine from January 1, 2020. He also announced his readiness to reduce the price of gas for Ukraine by 20-25%.

Earlier, Naftogaz stated that gas imported to Ukraine could be 20% cheaper, provided that the Russian Gazprom would not abuse its monopoly position in the European market.

In early May, Naftogaz filed a complaint with the European Commission over Gazprom’s abuse of competition rules.

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