: :inin Kyiv (EET)

Gazprom suggests exchanging letters of guarantee with Naftogaz instead of additional accords

Russian gas monopoly Gazprom has offered the National energy holding Naftogaz of Ukraine to exchange letters of guarantee, as well as to resolve the issues of prepayment for gas deliveries, said Russian Energy Minister Alexander Novak, Prime business news agency reported.

”Gazprom is proposing Naftogaz an exchange of letters, which would answer the questions and concerns of Naftogaz regarding prepayment,” Novak said.

According to him, Naftogaz insists on the addendum to the contract, as it fears that under the prepayment for the gas, the fuel will not be delivered or will be delivered under the volumes Kyiv applies for.

”Gazprom stands categorically against this, the Ministry of Energy of the Russian Federation supports the position of Gazprom, because the parties are considering the procedure of dispute in the arbitration court,” the Minister said.

As UNIAN reported, Naftogaz has initiated litigation against Gazprom in the Arbitration Institute of the Stockholm Chamber of Commerce in relation to two contracts. One concerns transit shipments of Russian gas to the European Union via Ukraine and the other one deals with purchases of Russian gas by Ukraine.

In mid-March 2016, Gazprom raised its claims against Naftogaz in the Arbitration Institute of the Stockholm Chamber of Commerce to $31.759 billion from $29.2 billion.

According to Naftogaz`s annual report, the amount of claims against Gazprom as of July 31, 2016 amounted to $28.3 billion.

In mid-October of this year, the Arbitration Institute of the Stockholm Chamber of Commerce completed oral hearings of the proceedings over mutual claims by NJSC Naftogaz of Ukraine and Russian gas monopoly Gazprom. The court also heard experts and witnesses of the proceedings.

The Stockholm arbitration is expected to deliver its final decision on the case by March 31, 2017.


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