Naftogaz Ukrainy CEO offers solutions to gas debt problem with Russia

April 14, 2014

Naftogaz Ukrainy CEO Andrei Kobolev said there were two ways to solve the gas problem for Ukraine, ITAR-TASS reported on April 12.

One is to make a deal with Russia’s Gazprom and keep the previous price. The other one is to reach an agreement with European companies so that they buy gas from Gazprom and then sell it to Ukraine and make direct payments for gas transit across Ukraine, Kobolev told the Ukrainian newspaper ZN.UA on Saturday, April 12.

He said Ukraine had already proposed that the European Commission and major European companies begin negotiations with Gazprom to discuss the terms of buying gas on Russia’s western border for pumping into Ukrainian underground gas storage facilities and transporting to Europe.

Kobolev said Ukraine continued gas price negotiations with Gazprom. “In accordance with the terms of the contract we sent an official proposal to preserve the present price of 268.5 U.S. dollars per 1,000 cubic metres. We have not received any answer so far,” he said.

Ukraine “sees no market factors” for raising the price and the new price of Russian gas “which is close to 500 U.S. dollars” is “non-market, unjustified and unacceptable”, he said.

“We have suspended settlements for the duration of the gas price talks,” Kobolev said, adding that the debt for the gas purchased earlier stood at 2.2 billion U.S. dollars as of April 1.

Copyright: ITAR-TASS, 2014