Gazprom Laid out Conditions for Gas Transit across Ukraine

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Georg Graf Waldersee, Commissioner of the Federal Government of the Federal Republic of Germany for Gas Transit across Ukraine, took place today in Moscow.  The parties discussed issues related to supplies of Russian natural gas to Europe in the period from January 1, 2020, Gazprom press release reads on October 9. Gazprom clarifies that Ukraine is currently taking steps to integrate the EU’s Third Energy Package into its legislation. To that end, the Ukrainian authorities need to, inter alia, ensure the independence of the national energy regulator and create an independent certified gas transmission operator. It was noted that the operator will have to undertake extensive preparations and substantial time commitments to successfully pass the certification and licensing procedure. In addition, there remains a need to approve an economically sound and transparent gas transmission tariff methodology for the independent operator. Unless these comprehensive efforts are completed by January 1, 2020, the only option for cooperation in the transitional period will be to extend the effective contract for gas transit adapted to the current market conditions, Gazprom press release reads. On October 4, the head of the Russian Ministry of Energy, Alexander Novak, said that the price of gas transit through Ukraine should be determined within the framework of European tariffs. Earlier on the same day, the European Commission announced the date of a new round of trilateral gas negotiations, and Russian President Vladimir Putin announced his readiness to extend the gas contract with Ukraine for a year. According to him, if Kyiv succeeds in implementing the energy legislation of Europe before the end of this year, then Moscow would sign a transit agreement in accordance with the laws of the European Union. If an agreement on a new contract is not reached, then Russia, according to him, is ready to extend the agreement on pumping gas to Europe through Ukraine for a year. Kyiv stopped purchasing gas from Moscow in November 2015, having started delivering more expensive fuel from Europe. At the end of 2019, the contract for the transit of Russian gas through Ukrainian territory to Europe ends, however, the parties have not signed an agreement yet. Izvestia