Gazprom Confirms Naftogaz Ukrainy Payment for January Deliveries
The Press Service of OAO Gazprom confirmed on Thursday, February 4, that Naftogaz Ukrainy paid in full for the January supply of natural gas. Gazprom supplied Ukraine with 2.55 bcm of gas worth about 780 million dollars in January.
Gazprom Amends Ukraine's Contracts Regarding Purchase Amounts and Penalties
A working meeting between Alexey Miller, Chairman of the Gazprom’s Management Committee and Oleg Dubina, Chairman of the Board of NAK Naftogaz Ukrainy was held at Gazprom Headquarters on November 24, 2009.
According to the agreements reached during the negotiations between the Prime Ministers of Russia and Ukraine, addenda to the Natural Gas Purchase and Sale Contract dated January 19, 2009 were signed.
Pursuant to the addenda, Ukraine will purchase up 33.75 billion cubic meters of gas in 2010. In addition, the signed documents stipulate that no penalties related to the amount of gas consumption by Naftogaz in 2009 will be imposed on the Ukrainian side.
U.S. Urges Ukraine to Overhaul Gas Sector, Prevent European Gas Cut
U.S. Special Envoy for Eurasian Energy Richard Morningstar urged Ukraine to overhaul its energy industry in order to prevent another gas crisis. Read the whole story in our In the News section or on Bloomberg.com.
Briefing Paper or Russia-Ukraine-EU Gas Cooperation
Gazprom released a briefing paper on Russia-Ukraine-EU gas cooperation. It can be found here and in the Fact Sheets section of the site.
Gazprom Confirms Naftogaz Ukrainy Payment for October Deliveries
Gazprom confirms that NAK Naftogaz Ukrainy has paid in full and in time for the Russian gas deliveries of October.
Gazprom Confirms Naftogaz Ukrainy Payment for September Deliveries
Gazprom confirms that NAK Naftogaz Ukrainy has paid in full and in time for the Russian gas deliveries of September. The payment has not necessitated any arrangement of additional funding or debt financing from Russia, thus demonstrating that Naftogaz Ukrainy has enough funding to effect the current payments. Gazprom expresses its hope that further deliveries of Russian gas will be paid for in the same timely manner as envisaged in the contract.
Gazprom Statement on Contract with Naftogaz Ukrainy
The issues related to natural gas trade between Gazprom and Naftogaz Ukrainy are regaining the attention of the media. Below please find Gazprom’s position on the company’s relationship with Naftogaz Ukrainy and response to incorrect assertions of growing contradiction between the two countries.
1. As a matter of fact, there is no dispute between the Governments of Russia and Ukraine concerning the agreements signed on January 19, 2009 on Russian natural gas transit to Europe and on its deliveries to the Ukrainian domestic market. Both parties have common opinion that these agreements, found through difficult negotiations, meet fully the interests of both Ukraine and Russia, as well as of Gazprom Group and Naftogaz Ukrainy. Moreover, the agreement on transit signed in January is beneficial not only for these two neighboring countries, but also to European gas consumers. Therefore, Gazprom sees no sense in revisiting this set of contracts.
These long-term agreements have been concluded for 11 years, which (provided that both parties strictly adhere to them) makes the deliveries of natural gas in Europe more reliable and predictable. Moreover, these documents meet the European standards.
2. The applicable transit tariffs are calculated based on the agreed formula depending on global oil and oil products price fluctuations.
Yulia Tymoshenko, the Ukrainian Prime-Minister, assumes that the transit tariff for Russian gas should increase by 65–70% starting from 2010. Obviously, her opinion is based on higher oil prices. The persisting volatility of oil and oil products price brings some uncertainty about the exact figure in the future. Gazprom experts are more conservative in their calculations: they forecast the transit tariff somewhere between USD 2.56 – 2.7, i.e. 50–60% of actual increase. However, this is not the core issue, as everybody understands that the exact figure will come out of the formula stipulated by the agreement.
This year Gazprom paid fully in advance for gas transit in the current year and in the first quarter of 2010, without any obligation to make this advance payment. Gazprom does not plan to make such advance payment for the next period, and this particular issue was discussed during the meeting between the President of the Russian Federation Dmitry Medvedev with the Head of Gazprom Alexey Miller.
3. Taking into account the economic decline in the neighboring country due to the global economy crisis, Gazprom Group does not apply penalties against its Ukrainian partner for shortfalls in consumption of gas volume set forth by the contract signed in January. The Russian company understands the objective reason for reduction of hydrocarbon procurements: the current situation of the Ukrainian economy does not allow consuming the total volume of gas previously contracted.
However, the current economic environment does not call for revisiting a long-term contract and its “take-or-pay” clause, as this economic crisis will not last forever.
Kupriyanov Statement on Future Ukraine Gas Tariffs
Commenting on the statement of Ukrainian Prime Minister Yulia Timoshenko at a government meeting where she said “price for gas transit through the territory of Ukraine from January 1, 2010 will increase by 65-70% depending on the oil price”, Gazprom’s official spokesman Sergei Kupriyanov stated:
“The tariff for gas transportation across the Ukrainian territory is determined by the formula stipulated in the contract. The tariff may vary depending on the oil price. For the moment Gazprom forecasts 2.56-2.7 dollars per thousand cubic meters for 100 kilometers in 2010. The real tariff figure will be determined as actual data are obtained for fuel oil, gasoil and natural gas prices in the reference period.”
Golubev Statement Confirms Ukraine's Underground Storage
In a statement to journalists in Moscow on 2 September, Gazprom Deputy Chief Executive Officer Valery Golubev confirmed that Ukraine has pumped 25 bcm into its underground storage facilities so far. Golubev also said that Ukraine needs to pump 28 bcm to guarantee uninterrupted supplies to Europe and that Ukraine plans to pump a total of 32 bcm.
Mr. Golubev’s press conference coincided with the 9th International Conference and Exhibition for Oil and Gas Resources Development of the Russian Arctic and CIS Continental Shelf.
Statement on the working meeting between Alexey Miller and Oleg Dubina
A working meeting was held today in Saint-Petersburg between Alexey Miller, Chairman of OJSC Gazprom’s Management Committee, and Oleg Dubina, Chairman of the Management Board of NJSC Naftogaz of Ukraine.
It was stated at the meeting that gas is being pumped into Ukrainian underground gas storage facilities according to schedule and in sufficient volumes in order to ensure the safe functioning of the Ukranian gas transit system during winter both in terms of gas supplies to domestic consumers and the transit of Russian gas to European consumers. Oleg Dubina also confirmed that payment for gas supplied by Gazprom to Naftogaz in August would be made in due time.
Only official statements, speeches and documents issued by Gazprom represent Gazprom's official position. All other materials are taken from the public media.
