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Gas Peace in the Holiday Season – Gazprom, Naftogaz Reach Transit Agreement

Russian natural gas will continue to transit through Ukraine to the end of 2024.

In a press announcement released today Naftogaz said that it, together with the Gas Transmission System Operator of Ukraine (GTSOU) and Gazprom, had signed a set of agreements to continue Russian gas transit through Ukraine.

The news comes with the clock timing on the previous gas transit agreement which was set to expire on January 1, 2020.

Naftogaz outlined that three agreements were signed that fulfilled the protocol of 19-20 December meeting in Berlin in Minsk, detailing:

  -  An interconnection agreement between GTSOU and Gazprom establishing technical procedures and rules for cooperation between the operators of the adjacent networks;
  -  An agreement on organization of transit between Naftogaz and Gazprom setting conditions and transit volumes for the next five years; and
 -   A settlement agreement between Naftogaz and Gazprom according to which both parties abandon mutual claims under the 2009 contracts.

Minimal transit volumes will be 65 bcm/year for 2020 and 40 bcm/year for 2021-2024.

Naftogaz and Gazprom agreed to withdraw from all arbitration proceedings where final decisions have not been rendered yet and to the lifting of legal attachments from Gazprom’s property, assets and monetary funds. The parties also agreed to the halt of any future claims and proceedings under contracts signed in January 2009.

The Ukranian company said that the agreements did not affect Naftogaz Group’s claims against the Russian Federation regarding assets seized in Crimea.

On 27 December 2019, Naftogaz announced that it has received $2.918 bn from Gazprom. under the Stockholm Arbitration Awards of December 2017 and February 2018.


This post first appeared on Natural Gas Asia - Asia's Unconventional Gas And O, please read the originial post: here

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Gas Peace in the Holiday Season – Gazprom, Naftogaz Reach Transit Agreement


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