Kyiv to demand compensation from Gazprom for gas transit termination Saturday, October 19, 2019 10:00:27 AM

"Naftogaz of Ukraine intends to demand from Gazprom compensation for alleged losses from the termination of gas transit from Russia to Europe. On November 1, we will send our claims to Gazprom for more than $11 billion," wrote Chief Commercial Officer of Naftogaz Yuriy Vitrenko on his Facebook page.

A day before, during a meeting with Russian Prime Minister Dmitry Medvedev, Gazprom's CEO Alexey Miller stressed the need to settle legal disputes before the conclusion of a new contract with Kyiv. The current gas transit contract expires at the end of 2019. "We are proposing a zero option that would completely stop all lawsuits," said Miller.

He added that gas supplies from Russia would be "significantly cheaper for Ukraine than reverse supplies from Western Europe." The price for the final Ukrainian consumers in direct deliveries can be 20 percent lower than in reverse deliveries, said the head of Gazprom.

Vitrenko confirmed the possibility of reducing the price. But he also added that it is not necessary to conclude a contract between Naftogaz and Gazprom for the lower price.

"It is important that Gazprom, following European rules, does not abuse its dominant position in the European market," said the representative of Naftogaz. According to him, “the Russian concern should not "prevent European companies from transferring gas transmission points on the Ukrainian-Russian border, as well as "actually block the export of gas from Central Asia to Ukraine and the European Union."

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