A Governmental delegation led by Minister of Energy and the Environmental Protection Oleksiy Orzhel has concluded negotiations and reached an agreement on gas transit to Europe.
As a result of the trilateral talks, Ukraine, Russia and the European Union have signed a new five-year contract. The Agreement provides for the possibility of prolonging the contract in 5 years for another 10 years on similar terms.
“Our team has defended the national interests of Ukraine, we have received acceptable conditions under the gas contract. In signing this document, we were guided by the priorities of Ukraine's energy security and the well-being of our people. Having inked the contract, Ukraine will maintain stability in the domestic and European gas markets. This will have a positive impact on energy markets and will be a significant factor towards reducing gas prices in the market,” said Prime Minister Oleksiy Honcharuk.
The minimum guaranteed transit volumes will be 65 billion cubic meters of gas for the first year and 40 billion cubic meters for the next 4 years. However, the actual volumes may be higher.
“One of the conditions Ukraine had set during the negotiations was the payment of $ 2.9 billion from Gazprom under the decision of the Stockholm Arbitration. We have already received this money. Plus, given that Ukraine's gas transit infrastructure remains fully operational while new gas delivery routes to Europe may not be implemented for a long time, we will receive approximately $ 2-3 billion annually for transit over the next five years,” said Oleksiy Orzhel.
The Prime Minister added that Ukraine has once again demonstrated to the European partners that it is a reliable partner that fulfills its obligations and guarantees energy security in the region.
“The signed today contract is the result of the coordinated work of our team. I especially want to thank my colleagues for their outstanding work - President of Ukraine Volodymyr Zelenskyy, the Government team, the Parliament and PJSC Naftogaz have made the impossible thing possible and achieved this document be signed. This is another difficult challenge that we have come through and achieved success,” stressed Oleksiy Honcharuk.