Ukraine MFA predicts terms for concluding new gas transit contracts

Gas transmission system operators of Ukraine and Russia must conclude an interconnection agreement on the Russian-Ukrainian border as provided for by the EU norms.

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Deputy Minister of Foreign Affairs for European Integration Olena Zerkal has said Ukraine and Russia are to sign two contracts on the transit of Russian gas to the European Union after 2019.

"Ukraine stands with the EU in a united front: from January 1, 2020, gas transmission must be based on the EU norms and rules. To this end, GTS operators of Ukraine and Russia must conclude an interconnection agreement on the Russian-Ukrainian border as provided for by the EU norms," she wrote on Facebook, following the tripartite Ukraine-EU-Russia talks that were held in Brussels on January 21.

"The second contract should cover gas transportation services. This contract should determine gas volumes and the period of transportation. The price of these services (tariffs) will be determined by the National Energy and Utility Regulation Commission (NEURC) based on European methodology. Here, we also have a consensus with the EU," she added.

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At the same time, Zerkal said it was too early to comment on the proposal of the European Commission regarding the future gas transit volumes since the issue depends on various scenarios for the development of the EU market, including infrastructure.

At the same time, according to her, the Russian side is seeking that Ukraine drop the claims against Gazprom under the Stockholm arbitration in exchange for the extension of the existing gas contract.

"The next consultations are to be held in May (read – after the presidential election)," she added.

She stressed that gas contracts of 2009 do not meet the requirements of Ukrainian and European legislation, as well as block Ukraine's integration into the EU gas market, in particular, due to the impossibility of completing Naftogaz's unbundling.

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