Tymoshenko seeks to eliminate Russian natural gas middlemen

11:36, 04 February 2008
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Gas agreements between Ukraine, Russia were violated

At press conference on Saturday, Prime Minister of Ukraine Yulia Tymoshenko concentrated significant attention on gas supply to Ukraine and its transit to the EU states, according to the government’s press-office.

The Head of Government has demonstrated agreements concluded by the previous leadership of the “Naftohaz of Ukraine” NJSC with the “RosUkrEnergo” company. These agreements provoked aggravation of the financial performance of the “Naftohaz” NJSC.

Thus, the first agreement signed on 29 July 2004 for the period from 2005 to 2030, concerns payment for natural gas transit via the territory of Ukraine.

The agreement fixes paying rate for transit 1 thousand cubic metre of natural gas via the territory of Ukraine amounting 1,09 USD per 100 km of transportation. At that the sides have no right to revise tariff rate during the first two years and then during 25 years – to revise it twice that had been already done.

“Practically till 2030 the agreement on natural gas transportation was signed for “RosUkrEnergo” at the price much lower then the market price. In other words, at the expense of demolition of the financial performance of the “Naftohaz” NJSC, devastation of the company which is the basis of strategic energy security of Ukraine, such agreements were signed,” Yulia Tymoshenko noted.

The second agreement provided for 2005-2030 and was also concluded on 29 July 2004. It concerns handing gas depositories of Ukraine over to the “RosUkrEnergo” company for exploitation.

“According to the agreement, payment of the exploitation cost of gas depositories on gas pumping, saving and extraction is fulfilled for 2,25 USD per 1 thousand cubic metre of gas for annual period of saving. And then the same position – none of the sides has no right to demand revision of prices of this contract more than twice during the period of 25 years. Though the price has been already revised twice,” the Prime Minister stressed.

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