Ukraine-Russia gas transit talks completed

Ukraine-Russia talks on the terms of gas transit contracts have come to an end in Vienna.

"At 05:28 today, virtually round-the-clock four-day negotiating marathon with Gazprom was completed in Vienna," Chairman of the Gas Transmission System Operator of Ukraine LLC Serhiy Makohon posted on Facebook.

He also informed that he was flying to Brussels to sign an interconnection agreement with the Slovak GTS operator Eustream.

"I am already flying to Brussels to complete another important task – to sign on time an interconnection agreement with the Slovak GTS operator Eustream on the basis of European rules," Makohon added.

As reported, the representatives of NJSC Naftogaz of Ukraine and Russia’s Gazprom met in Vienna on December 26 to start negotiations on the terms of gas transit contracts. At the same time, Executive Director of Naftogaz of Ukraine Yuriy Vitrenko emphasized that the fact of negotiations did not mean any concessions on part of Ukraine. He informed that both sides had prepared their draft contracts, but only one set would be signed finally.

The current gas transit contract between Naftogaz and Gazprom expires on December 31, 2019.

The representatives of the European Commission, Ukraine and the Russian Federation at the talks in Minsk on December 20 reached a final agreement on fundamental points of Russian gas transit to Europe through the territory of Ukraine.

At a briefing on December 21, Energy and Environmental Protection Minister of Ukraine Oleksiy Orzhel said that Naftogaz and Gazprom would sign a new five-year agreement on transit of Russian gas to Europe through Ukraine, with the possibility of extension for another 10 years. The transit volume will reach 65 billion cubic meters in the first year, and 40 billion cubic meters in the next four years.

Earlier, NJSC Naftogaz of Ukraine, Ukrtransgaz JSC and Main Gas Pipelines of Ukraine PJSC signed the agreement on the establishment of a joint working group with five leading European operators interested in supporting the process of unbundling and further involvement in the management of the Ukrainian GTS. The working group includes GRTgaz SA (France), NV Nederlandse Gasunie (the Netherlands), Snam SpA (Italy), Eustream (Slovakia) and Fluxys SA (Belgium).

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