pipeline

The European Commission hopes for a solution on the transit of gas from the Russian Federation to the EU through Ukraine

“The European Commission proceeds from the fact that until the end of 2019, when the current contract for gas transit to Europe between Gazprom and Naftogaz of Ukraine expires, a solution will be found and European consumers will be able to continue to receive Russian gas,” the vice-president said Commissioner MarosSefcovic on the results of negotiations with the Minister of Energy of the Russian Federation Alexander Novak.

As Novak stated, “we discussed this process in detail, what could be the options from January 1, 2020 on the conclusion of a new contract for transit through Ukraine.”

Shefchovic also noted: “We are in close contact with our Ukrainian colleagues, and I can say that it is very important for the European Union that all these reforms in the field of energy continue, and it is very important for us that the process of unbundling Naftogaz continue, because that it is clear not only for the European Commission but also for gas transmission companies in Europe, that it will be much easier to negotiate with a company that fully meets European traditions and that it will work in the position of a certified gas transporter. ”

“We are working closely with the Ukrainian government. But of course, now we have to wait for new elections, results, new government. But unbundling Naftogaz is a very important issue, not only for the European Commission, but also for the World Bank, EBRD and the rest of the European governments, because we know that this will be a very important issue that will have a direct impact on what we hope will be a new long-term contract for the supply of gas through Ukraine to the European Union, ”the European official added.

“Our colleagues are talking about the need to introduce European legislation. But we know that today Ukraine is not yet ready from the point of view of a change in the current legislation to ensure the conclusion of a contract on the terms used in Europe,” the Russian minister said.

“In fact, the easiest option is to extend the existing contract if acceptable, economic competitive tariffs are offered, if the relations that we have today are settled – the proceedings in arbitration courts,” he stressed.

“But we know that today there are no proposals from the Ukrainian colleagues. We associate this with the fact that there is a change now – there will be legislative elections, then the government will be chosen. We count on a constructive approach from the Ukrainian colleagues, and On its part, if it is available, our commercial company Gazprom is ready to conduct such negotiations — both on gas supplies to Ukraine and on transit,” Novak said.

“If there is a wish of the parties, there is always the opportunity to reach an agreement and resolve all issues regarding contractual obligations. Of course, we assume that European consumers will receive gas reliably in accordance with contracts,” the Russian minister stressed.

“Gazprom is also ready to participate in a consortium for managing the gas transmission system (Ukraine – IF), if such proposals are made by Ukraine,” he added.

Novak recalled that, according to Russia, the Stockholm arbitration made discriminatory decisions: under the gas transit contract, the obligations of “transport or pay” were taken into account, and under the contract for gas supply – “take or pay” – were not taken into account. Gazprom appealed to the Swedish court.

“The date of the appeal is set, but it certainly goes beyond January 1, 2020, so Gazprom offered Ukrainian partners to sign an amicable agreement that would create conditions for more constructive relationships in the framework of subsequent contracts from January 1, 2020 and gas supply, and gas transit. For this, there is the entire legal framework. We believe that this is one of the most important points for further constructive cooperation with our Ukrainian partners, “Novak concluded.

In turn, MarosSefcovic said: “We also believe that we will not need plan” B “because we have always had some questions over the past four years, and we have always found good constructive solutions.”

“And we were able to agree today that we are planning our tripartite talks for September. I’m sure that if we can continue this constructive approach, we will be able to find a solution to all these issues so that there are no issues either in November or in December, and that a solution will be found for the supply of gas through Ukraine to the European Union, “he concluded.