REUTERS
Naftogaz agrees with the option of concluding a 10-year transit contract, which was proposed by European Commission's Maros Sefcovic.
Executive Director of NJSC Naftogaz of Ukraine Yuriy Vitrenko says Naftogaz has sent an official response to the Russian gas giant Gazprom's offer to conclude a 12-month gas transit contract.
In particular, the letter says the parties should continue to discuss continued gas transit in line with European rules in a trilateral format with the participation of the European Commission, he wrote on Facebook on November 25.
Naftogaz expressed confidence that thanks to the effective joint work of the Ukrainian parliament, the government, the regulator, Naftogaz, and Ukrainian GTS Operator, the implementation of European rules in Ukraine is progressing by the agreed schedule. Now, Gazprom has every opportunity to conclude a new long-term contract for gas transit via Ukraine by the said rules.
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"We have once again noted that Naftogaz agrees with the option of concluding a -10-year] transit contract, which was proposed by Vice-President of the European Commission Maros Sefcovic. I'll add that we have no doubt that this option meets both the European rules and the legitimate interests of the Ukrainian and Russian sides," he said.
According to Vitrenko, if Gazprom considers its proposal as an option in case of emergency, that is, if Gazprom doesn't have time to conclude a long-term transit contract, this option should still comply with Ukrainian legislation and European rules.
Vitrenko says that Naftogaz sees no legal grounds so far for not concluding a new contract for gas transit via Ukraine under European rules, and expresses its willingness to work diligently on the contract.
As UNIAN reported earlier, in the middle of November Gazprom sent to Naftogaz of Ukraine an official proposal to extend the existing contract or conclude a new one on gas transit via Ukraine for a one-year period, taking into account the forecast demand of European buyers for gas in 2020.
According to Gazprom, the required conditions for the extension of the existing contract or the conclusion of a new one include both parties' refusal from all mutual claims in international arbitration and the termination of all relevant legal proceedings. In addition, Gazprom proposed that the Anti-Monopoly Committee of Ukraine (AMCU) revoke its decision on a fine imposed on Gazprom for "violation of economic competition." Gazprom also wants Naftogaz to withdraw its motion for a probe by the European Commission against Gazprom.
On November 12, CEO of National Joint-Stock Company Naftogaz of Ukraine Andriy Kobolyev said that if Russian gas transit halts on January 1, 2020, Naftogaz will provide Ukrainian consumers with gas from storage facilities and, if necessary, it can import gas under contracts.
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 Ukrainian territory.