Photo from UNIAN
The Ukrainian and Russian sides discussed the possibility of signing a gas transit agreement in line with European rules.
Ukrainian and Russian delegations held bilateral gas negotiations in Vienna on Thursday, November 28.
The Ministry of Energy and Environmental Protection of Ukraine says the meeting took place in preparation for the signing of an agreement on gas transit via the Ukrainian gas transmission system.
"The parties discussed the possibility of signing the agreement in accordance with European rules, and agreed to intensify work," the Ukrainian ministry stated. "The negotiations will continue both bilaterally and in a trilateral format with the European side."
The signing of a long-term gas transit agreement in accordance with European law and under economically sound conditions are "a matter of energy security not only of Ukraine but also of Europe," the ministry says.
"We, as a reliable partner, must ensure stability and uninterrupted transmission of natural gas to European markets," the statement reads.
The Ukrainian Ministry did not mention the issue of direct gas supplies to Ukraine as part of talks, while the Russian energy ministry in their statement said "prospects for direct purchase of Russian gas for Ukrainian consumers" were discussed among other things.
"The parties discussed Russian-Ukrainian cooperation in the gas sector – settlement of mutual claims over the execution of contracts, conditions for Russian gas transit to Europe from 2020, and prospects for direct purchase of Russian for Ukrainian consumers. The parties exchanged offers on resolving issues raised and agreements were reached on the intensification of joint work in a bilateral format in the coming days," the Russian energy ministry said in a statement.
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Earlier, Prime Minister of Ukraine Oleksiy Honcharuk assured Ukraine was not in negotiations with Russia on direct gas deliveries.
The Russian ministry notes that the talks were attended by Minister of Energy and Environmental Protection of Ukraine Oleksiy Orzhel, Russian Minister of Energy Alexander Novak, Gazprom CEO Alexey Miller, and representatives of NJSC Naftogaz of Ukraine and Gas Transmission System Operator of Ukraine LLC.
The next round of trilateral talks on gas transit, involving Ukraine, Russia, and the European Commission, may be held in the first week of December.
UNIAN memo. The existing gas transit contract between Ukraine and Russia expires at the end of 2019.
Minister Orzhel earlier emphasized that Ukraine opposed discussions of direct gas supplies and the settlement of arbitration claims between Gazprom and Naftogaz during trilateral negotiations on gas transit.
On November 5, spokesman for the Russian president Dmitry Peskov said that new gas transit arrangements were "virtually impossible" if Ukraine did not give up the enforcement of the Stockholm arbitration award.
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Russia has been constructing gas pipelines bypassing Ukraine, including Nord Stream 2.
Ukraine stands against the NS2 construction as it will most likely lose its status of a gas transit country, while its potential revenue losses are estimated at US$3 billion annually. The project is also highly criticized by the U.S., Poland, and the Baltic States.