Gazprom CEO considers extension of transit contract by Ukraine the only way

TASS Russian News Agency | Oct 18, 2019 at 12:57 PM

/Updates, adds info after para 2/

MOSCOW, October 18. /TASS/. The extension of the current transit contract with Ukraine amid updated market conditions may be the only way, Chief Executive Officer of Gazprom Aleksei Miller said at a meeting with Prime Minister Dmitry Medvedev.

"As of today (Ukraine) still has a long way to go before completion of that process (shifting to Third energy package - TASS). And if Ukraine fails to set up an independent gas transport operator and an independent regulator by January 1, 2020 the extension of the current contract will be the only way amid new updated market conditions," he explained.

Under which law the new transit agreement with Ukraine may be concluded remains an important issue, Miller said. "Ukraine has set itself the task of shifting to the European legislation - the Third Energy Package - starting January 1, 2020," he said, adding that "the procedure is not that quick and requires the creation of an independent gas transport operator and an independent regulator to establish tariffs."

Moscow is ready to sign the contract on gas transit based on the European legislation, President Vladimir Putin said at the Russian Energy Week forum on October 2. Russia is also ready to extend the gas transit contract with Ukraine for one year if Kiev fails to implement the European energy legislation, President added. Russian Energy Minister Alexander Novak said earlier that Moscow is considering the possibility of revising technical parameters stipulated by the gas transit contract with Ukraine in case of its extension for one year. Russia is ready to offer extension of the contract on the existing legal conditions, he said, suggesting that some technical parameters be revised since the situation has changed dramatically over the past ten years, including regarding Ukraine's gas consumption and transit volumes.

More sources
  • Gazprom CEO considers extension of transit contract by Ukraine the only way (TASS Russian News Agency: Oct 18, 2019 at 10:32 AM)