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    Gazprom Proposes New Gas Deal to Naftogaz


The proposal set out several conditions for a new deal to be reached.

by: Joseph Murphy

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Gazprom Proposes New Gas Deal to Naftogaz

Russia’s Gazprom said on November 18 it had made an official proposal to its Ukrainian counterpart Naftogaz that they enter into a one-year transit deal, either representing an extension of their existing 10-year contract or a new agreement.

Gazprom and Naftogaz’s current contract is due to expire at the end of 2019, and there are fears that if a new deal is not reached, Russian gas supplies to Europe could be disrupted. Ukraine transited 86.8bn m3 of Russian gas in 2018, constituting 43% of Russia's total sales to Europe that year.

The proposal, signed by Gazprom head Alexei Miller, set out several conditions for a new one-year agreement, according to a company statement. First, both sides must drop all claims against each other in international arbitration courts. Second, the decision by Ukraine’s antimonopoly committee fining Gazprom for “undermining of economic competition” must be reversed. And finally, Naftogaz should withdraw the petition it filed with the European Commission for an investigation against Gazprom.

Gazprom also said it was awaiting Naftogaz’s position on whether the Ukrainian firm would resume direct Russian gas purchases from 2020.

Copies of the proposal were sent to Ukraine's energy minister Alexey Orzhel and European Commission vice president Maros Sefcovic. As of press time Naftogaz had not commented on the proposal.