Naftogaz pays back USD 1.45 bln to Gazprom

Ukraine’s Naftogaz repaid $1.45 billion debt to Gazprom, one of the prerequisites for resuming Russian gas supply to Ukraine as agreed in the interim deal signed by Ukraine, Russia and the EU.

The deal allows Naftogaz of Ukraine to order gas from Gazprom flexibly and without take-or-pay provisions.

“The terms of the trilateral agreement allow us to buy Russian gas for balancing the system in times of peak demand. Russian gas will be ordered if Ukrainian consumers require more gas than can be provided by other sources such as current volumes in storage, our own production and imports from the EU. Only in the case of excess demand will we make use of our right to buy gas from Gazprom. The main suppliers of imported gas to Ukraine this winter are European companies,” said Naftogaz CEO Andrei Kobolyev.

The total volume of gas that Naftogaz will import this winter depends on the behaviour of Ukrainian consumers. The more efficient use of energy will translate into less import.

Naftogaz will pay Gazprom $3.1 billion related to 11.5 billion cubic meters of gas supplied in November to December 2013 and April to June 2014, priced at $268.5 per thousand cubic meters, following the trilateral agreement signed in Brussels last week. The Arbitration Institute of the Stockholm Chamber of Commerce will make a decision on debt settlement between the parties for the period since 2010.

The Brussels protocol does not prejudice these Arbitration Institute proceedings.

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Press Release; Image: Naftogaz

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