Naftogaz suspends gas purchases from Gazprom starting from 1 July until supply conditions are agreed

01.07.2015, 07:14:27

Naftogaz suspends purchases of natural gas from Gazprom starting from July 1, given the expiration of the 2nd quarter terms package and the absence of agreed supply conditions for the upcoming periods. The delivery of Russian gas via Ukraine to Gazprom's clients in the EU and Turkey will continue in full in accordance with the existing transit contract.

Naftogaz is ready to renew gas purchases from Gazprom after a comprehensive temporary agreement is reached between the parties. Such an agreement should cover all unresolved issues related to the disputed gas supply contract between Naftogaz and Gazprom at least until 31 March 2016. Just as the previously agreed "winter package", this solution should be trilateral and binding in order to ensure its implementation by all sides. The final settlement between the companies is to be made based on the outcome of the ongoing arbitration proceedings in Stockholm.

At the recent trilateral negotiations in Vienna, the European Commission and Ukraine have offered Russia to agree on such a temporary solution. It would prevent the unwanted escalation during the next winter season and ensure security of supply of Russian gas to Europe. However, the Russian delegation rejected the offer and refused to sign a trilateral protocol.

Naftogaz hopes that with the assistance of the European Commission Russia and Ukraine will agree on a solution acceptable to all sides. Naftogaz is ready take part in trilateral negotiations at any time suitable to all parties.