Naftogaz and Gazprom reach deal on gas supplies this winter

Andrey Kobolev, Head of Naftogaz Ukraine, and Alexey Miller, Head of Gazprom, have reached a deal on gas supplies to Ukraine this winter, reports Interfax-Ukraine citing Alexey Miller.

17 September 2015 14:10

“We expect the deal, brokered by the EU, to be signed next week. Under the deal, gas supplies are to be resumed as of October 1 and be paid for in advance,” said Miller.

“In the next few days, Naftogaz Ukraine will apply to Gazprom for a discount on the custom duty, and, just as it was the case before, Gazprom will submit the application for consideration of the Russian government. The price we agreed on will be competitive and on par with the one Gazprom charges its EU clients. All of the outstanding key issues between the two sides have been resolved,” he said.

According to Miller, a $500 million loan extended by the EU banks to Ukraine will enable it to buy 2 billion cubic meters of gas. In its turn, Gazprom will drop a ‘take or pay’ clause in the contract for the next two quarters,” said Miller.

“This is not enough to see Ukraine safely through autumn and winter, so we will continue our negotiations,” Miller said.

Naftogaz expects the ‘winter package’ to be signed by the end of September.

Ukraine suspended purchasing Russian gas after no deal was reached at the June 30 negotiations with Gazprom.

Currently, Ukraine is importing gas solely from the EU via reverse flows.

With the heating season coming, Ukraine is to ensure its underground storage facilities have no less than 19 cubic meters of gas.