Naftogaz suspends gas purchases from Gazprom as of July 1

NJSC Naftogaz of Ukraine has suspended gas purchases from Russia's OAO Gazprom, starting from July 1, given the expiration of the 2nd quarter terms package and the absence of agreed supply conditions for the upcoming periods during the tripartite talks in Vienna on Tuesday, the company's press office reported.

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"The delivery of Russian gas via Ukraine to Gazprom's clients in the EU and Turkey will continue in full in accordance with the existing transit contract," the company's statement reads.

The company explained that an important condition for the resumption of purchases of Russian gas is a comprehensive temporary agreement between the parties covering all unresolved issues related to the disputed gas supply contract between Naftogaz and Gazprom at least until March 31, 2016.

"This solution should be trilateral and binding in order to ensure its implementation by all sides. The final settlement between the companies is to be made based on the outcome of the ongoing arbitration proceedings in Stockholm," the statement reads.

"At the recent trilateral negotiations in Vienna, the European Commission and Ukraine have offered Russia to agree on such a temporary solution. It would prevent the unwanted escalation during the next winter season and ensure security of supply of Russian gas to Europe. However, the Russian delegation rejected the offer and refused to sign a trilateral protocol," the company reports.

Naftogaz hopes that with the assistance of the European Commission the parties will reach an agreement on acceptable conditions for Russian gas supplies to Ukraine in the near future.

"Naftogaz is ready take part in trilateral negotiations at any time suitable to all parties, as noted in the statement of Naftogaz.

As UNIAN reported earlier, Ukraine and Russia failed to reach an agreement on gas issues, and the European Commission said it would continue seeking a way acceptable for the continuation of the tripartite talks.

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