Ukraine energy minister admits possibility of restoring direct gas supplies from Russia – Hromadske

Direct gas supplies were a condition Russia put forward for extending the gas transit contract, Orzhel says.

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Ukraine could "potentially" agree on direct gas purchases from Russia, but its price must be in line with European indicators, Energy Minister Oleksiy Orzhel said.

In its negotiations with Russia, the Ukrainian side sticks to a "clear, frank and honest" position, Orzhel told a TV panel show, according to Hromadske.

"We say: if we and you [Russia] can negotiate direct deliveries, potentially, in a package with transit – because this is how Russia puts it as a condition, the price must be linked to the European indicator. In no case can we get a policital price any longer," the minister said.

Orzhel explained that the price of gas must depend on the price set on the European market.

"According to estimates, in the near future there is a possibility of an increase in supply, an increase in infrastructure, and an increase in LNG supplies in Europe [which will lead to a reduction in gas prices].

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He stressed that this should be a fully economic, not political, price.

Orzhel said that direct gas supplies were a condition Russia put forward for extending the gas transit contract.

"They [Russians ] say: it's the transit contract, volumes, and direct deliveries. On our part, our position on the execution of arbitration awards is very substantiated," the minister concluded.

As reported earlier, Ukraine dropped direct gas purchases from Russia four years ago.

Read alsoUkraine-Russia ministerial consultations on gas transit held in coordination with Europe – Naftogaz

At the same time, Russia is not agreeing to conclude a new transit contract to transmit gas via Ukraine Ukraine, which annually brings about $3 billion to Ukrainian coffers. The current deal expires on December 31.

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