Energy security and stable transit to the EU require transparent rules

The replacing of gas purchases for the European companies from Ukraine's western border to the western border of Russia will ensure a reliable gas transit to the European Union and in the end guarantee energy security of the EU states. By delivering gas to the customers on the border with Ukraine, Gazprom will be deprived of a chance to threaten the Europeans to terminate supplies and use groundless accusations of unauthorized pumping off gas by Ukraine.

"The purchase of Russian gas on the border of Ukraine with Russia will provide the European gas companies with an opportunity to dispose of their gas on the territory of Ukraine, including to use the underground gas storage facilities in the west of our country. Ukraine, in turn, will obtain a direct connection with the European operators of gas networks. Such transit structure is beneficial to both parties," said the Chairman of the Naftogaz of Ukraine Board  Andriy Korolev.

The Naftogaz of Ukraine considers necessary to emphasize that adoption of the law of Ukraine "On the sanctions" shall not automatically impose sanctions against any person, including against Gazprom company. The law only lays legal grounds to apply them. At the same time, replacing of gas purchases by the European companies to the western border of Russia will not just eliminate the potential risk of sanctions, but also afford to bring the contractual relations in gas transit area to compliance with the provisions of the EU Third Energy Package, which Ukraine should implement till 2015. This solution fully complies with the regulations of the European Energy Community that Ukraine joined in 2011.

Naftogaz respects long-term contracts of the European consumers for Russian gas supplies and understands to change them it requires certain negotiations and time. At that, the Company considers the present situation cannot be viewed as stable. This situation which occurred can lead to the gas crisis of 2009, when Gazprom terminated gas deliveries to Europe.

First, the terminated on 17 June, on the initiative of the Russian party, contract between PJSC "Ukrtransgaz" and “Gazprom export" company on balancing gas makes impossible for Gazprom to use gas from the Ukrainian underground storages to cover peak demand in the EU.

Secondly, the lack of direct agreements (Interconnection Agreements) between "Ukrtransgaz" and operators of transportation systems of the neighbouring countries makes it impossible to provide standard balancing in the process of gas transit. Such agreements are possessed by “Gazprom export" but they contradict legislative provisions in effect in the EU. Due to the fact the Russian monopoly controls transportation and sales of gas in the eastern borders of Europe.

As a reliable transit country, NJSC "Naftogaz Ukrainy" considers it obliges to warn the European partners about possible risks and offers to solve the problem with joining efforts by means of trilateral negotiations between the EU, Ukraine and Russia.