Ukraine is ready to offer Gazprom a gas transit tariff between $2.56-3.21

TASS Russian News Agency | Sep 20, 2019 at 4:47 PM

KIEV, September 20. /TASS/. Ukraine is ready to offer Russian gas giant Gazprom a tariff for the transit of Russian gas to Europe in the range of $2.56-3.21 for pumping 1,000 cubic meters of gas per 100 km depending on reservation of capacities, head of the board of Naftogaz of Ukraine Andrey Kobolev said in Brussels.

"Both scenarios were designed for 15 years of capacity reservation ... If Gazprom reserves 60 bln cubic meters per year, then in 2020-2024 Naftogaz sets a tariff of $3.21 for pumping 1,000 cubic meters of gas per 100 km. If Gazprom reserves 90 bln cubic meters, then the tariff will be $2.56," Kobelev said as quoted by Deutsche Welle.

According to him, Naftogaz expects the tariff for the transit of Russian gas to the EU to amount to $2.61 in 2019.

"The bigger the volumes and the longer Gazprom books [capacities], the lower the tariff" - said Kobolev, adding that the Ukrainian side has not yet received a response from the Russian Federation.

Kobolev ruled out the possibility of gas transit without concluding an agreement, noting that in this case it would be "smuggling". He said this commenting on media reports that according to EU gas rules, Ukraine would be obliged to transport Russian gas without concluding a contract. According to him, "there is no such option."

"Short-term reservations are permitted by the European law, so we will definitely allow all participants (...) But I can't imagine how one can observe the law by sending gas from Russia without a contract. This can be considered smuggling," Kobolev said.

He explained that for such a reservation it is necessary to sign an agreement between the operators of the two gas transportation systems.

"If you remain within the framework of EU law, you first need to have an interconnection agreement. If it is signed, then you can open the booking season," Kobolev said and added that without such an agreement, the gas transmission system operator does not have legal grounds to believe that a particular volume of gas is available for transportation.

The current contract for gas transit from Russia to the European Union expires on December 31, 2019. On Thursday, in the course of trilateral consultations between the EU, Russia and Ukraine, the Ukrainian side presented the project of separating the operator of its gas transportation network from Naftogaz and registering it as a separate legal entity as required by European standards.