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Naftogaz

Naftogaz plans to re-export the natural gas bought from Gazprom

The Ukrainian company Naftogaz plans to start buying natural gas from Gazprom and believes it will be able to re-export these quantities to Europe. This tells Finance Director Yuriy Vitrenko. He explains that the Stockholm Court of Arbitration has lifted the re-export limit that exists in the current contract between Naftogaz and Gazprom.

The court also ruled that the Ukrainian company should buy 5 billion cubic meters of gas per year from Gazprom under the bilateral treaty signed in 2009. According to the estimates of the Russian company, the amount that will pay Naftogaz for the purchase of these gas quantities is 2 billion USD per year.

The contract between Naftogaz and Gazprom foresees that the Ukrainian company should buy 52 billion cubic meters per year, including a “take or pay” clause, so Ukraine has to pay part of these agreed amounts, no matter whether it will take them.

This clause is now in the relationship between the two companies after the arbitration decision, but the quantities are significantly reduced.

From 2015 Ukraine does not buy gas directly from Gazprom, but relies on reverse links with the courts, as well as local gas extraction.

About Viliyana Filipova

Viliyana Filipova is 27 year-old girl from Varna, Bulgaria. She is founder and Chief Editor of Finance Apprise Journal, working also as analyzer on the world finance and commodity markets.

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