Naftogaz not to pay Gazprom for gas consumed in occupied Donbas

Wednesday, May 18, 2016 - 19:50 (EEST) Section: Latest news

NJSC Naftogaz of Ukraine has not received natural gas from Gazprom at the entry points to the national gas transportation system located in the territories beyond government control, and therefore the company does not intend to pay for it, according to the Naftogaz statement released by its press service.
The statement was published in connection with the Russian energy giant Gazprom`s demand to Naftogaz to pay $0.67 billion for gas, allegedly delivered to consumers in Donetsk and Luhansk regions in the period between February 2015 and April 2016.
NJSC Naftogaz of Ukraine has not been purhchasing gas from PJSC Gazprom  since November 2015, and before that time, the company imported gas exclusively through the entry points to the GTS in the government-controlled territory. The whole volume of gas purchased by Naftogaz have been accounted for by the parties and paid for by Naftogaz,” according to the Ukrainian state-owned holding.
Naftogaz also stressed that all contentious issues on the mutual requirements with Gazprom have been shaped into the lawsuits that are pending in Stockholm Arbitration Court.
”In January 2016, the European Commission and Ukraine have proposed to the Russian side to negotiate the settlement of violations by Gazprom  of the Ukrainian laws and the EU legislation. The Russian side has evaded negotiations so far… Naftogaz remains open to discussions on all contentious issues,” reads the statement.
UNIAN memo. Naftogaz of Ukraine is Ukraine`s largest state-owned vertically integrated oil company, which produces about 90% of oil and gas in Ukriane. Naftogaz develops gas and oil fields, produces oil and gas, deals with transportation and sales of oil products through its own network of filling stations.
Naftogaz is the major supplier of gas to Ukrainian consumers. The main directions of gas deliveries are: from Russia through Gazprom and from Europe through suppliers from Slovakia, Hungary and Poland. Ukraine ceased to buy Russian gas in the autumn of 2015, living through the winter of 2016 completely with the available reserves, as well with the gas procurement in Europe.