EN|RU|UK
  52724

 Ukraine halts gas purchase from Russia

газ российский

Russian Gazprom and Ukrainian Gas Transportation Systems officially confirmed the halt of Russian gas import to Ukraine on July 1.

Censor.NET reports citing ZN.UA.

Thus, today Ukraine again fully switches to gas reverse as it did last summer, when the two parties - Naftohaz and Gazprom had filed mutual claims to the Stockholm arbitration on June 16.

The reason is absence of negotiated arrangements between Gazprom and Naftohaz on the supply conditions after the second quarter. Shortly before Naftohaz announced that it would not order and prepay any amounts of Russian gas. It was confirmed today by Ukrtranshaz that effective July 1, Ukraine is importing gas only from Slovakia.

"As of this morning the central control department of Ukrtranshaz received an application to import 13.6 million cu. meters of natural gas from the territory of Slovakia. There are no supplies for the needs of Ukrainian consumers from other directions," the Head of Public Relations and Press Department of Ukrtranshaz Maksym Biliavskyi commented to Interfax-Ukraine.

The supply halt has officially been confirmed by Gazprom CEO Alexey Miller.

Read more: Naftohaz to stop bying gas from Russian Gazprom effective July 1

As reported by the Associated Press, he said that Russia halted the supply at 10 a.m. Kyiv time because Ukraine didn't make an advance payment for July's delivery. "Gazprom is not going to send gas to Ukraine at any price without the advance payment," Miller said in comments carried by Russian news agencies.

The night before Russia and Ukraine failed to agree on signing a new tripartite document that would fix all the conditions and procedure for the import of gas from Russia to Ukraine starting from the third quarter onwards.

As reported earlier, Russia and Ukraine refused to sign "big deal" on gas for winter and up to the end of the second quarter of 2016.

"As the additional agreement between the National Oil and Gas Company Naftohaz Ukrainy and Open Joint Stock Company Gazprom expires on June 30, 2015 with no other supply terms agreed today during trilateral talks in Vienna, Naftohaz stops purchasing gas from the Russian monopolist on July 1. The gas transfer through the territory of Ukraine for European clients of Gazprom will be continued in full as per contract terms", Naftohaz stressed in the special statement.

Read more: Russian, Ukrainian, EC gas talks didn't yield any tangible results

Ukraine will not buy Russian gas at the same old price of $247.18 per thousand cu. meters offered by Russia, the Minister of Energy and Coal Industry of Ukraine Volodymyr Demchyshyn stressed.

"We will buy gas. But not Russian - until we agree on the price, we will buy it from other sources," he said.

Back in February, Naftohaz at the suggestion of the European Commission offered Gazprom to extend "winter package" until spring 2016.

The new interim agreement on gas with Russia is technically ready, the Ukrainian side stated. In its turn, Moscow declared that it was ready to abolish the principle of "take or pay" to Naftohaz until the end of the year. In late March, Russia extended the low price of gas for Ukraine over the second quarter at around $248 per thousand cu. meters.

Negotiations on the "summer package" had to take place as early as mid-April, with intention to sign a new "big" interim agreement between Naftohaz and Gazprom, which would settle the "gas" relations between Ukraine and Russia before the end of the proceedings in the International Stockholm Court. However, in spring Russia refused to participate in them and the meeting was postponed for the summer. The discount discussed at the Ukraine-Russia-EU trilateral negotiations is such only by name, but in fact gives a non-market price by the real market conditions formula.

According to the Energy Minister Volodymyr Demchyshyn, the 2009 formula of the contract between Gazprom and Naftohaz displays a non-market price of $295-296 per thousand cu. meters in the third quarter of 2015. At the same time Ukraine buys reverse gas at $250 and is not ready to pay more for Russian. "I think that the Russian price will be lower than the European," Demchyshyn said.

 
 
 
 up