Russia-Ukraine-EU Gas Transit Protocol
Representatives of the EU, Ukraine and Russia (hereafter the parties) welcome the reaching of the following agreements, between the concerned companies of Russia and Ukraine, that ensure, from January 1, the continuation of the transit of Russian gas across Ukrainian territory.
With the aim of settling legal disputes, by December 31:
1.1 Together with the execution of the agreements, envisaged in point 2, Gazprom and Naftogaz will sign and execute irrevocable agreement about the settlement, envisaging:
The payment of almost $2.9bn, in accordance with the December 2017 and February 2018 decisions of the Arbitration Institute of the Stockholm chamber of trade and industry;
The revoking of all unresolved arbitration cases and lawsuits of either side against the other, including Naftogaz’ claims for $12.2bn and 1.33bn m3 of gas;
The lifting of arrests on Gazprom’s property, funds and assets as well as the rejection of future possible claims and suits relating to the January 2009 contracts for the supply and transit of gas.
1.2 By December 29, 2019 Gazprom and Ukraine are to sign an irrevocable global agreement in the case of PTS 2019-10 Gazprom vs Ukraine, now being examined by an arbitration court in the city of Geneva. This global agreement will consider the termination by Ukraine of all current and possible future demands against Gazprom based on the decisions of the Antimonopoly Committee of Ukraine No 18-r of January 22, 2016 and the corresponding decision of the business court of the city of Kiev of December 5, 2016 (including the demands for payment of a penalty and a fine).
2. In order to continue the uninterrupted transit of Russian gas across Ukraine
2.1 Gazprom will sign an agreement with Naftogaz Ukrainy (hereafter the organiser) for the organisation of the transport of gas across Ukraine.
2.2 in executing the agreements in Para 1, the following will be ensured by December 29:
2.2.1 Gazprom and the operator of the Ukrainian gas transmission system (OUGTS) will sign an interoperator agreement;
2.2.2 The organiser and OUGTS will sign a gas transport contract (a contract to transit gas). In the course of 2020 the Ukrainian energy regulator NKREKU will make the necessary amendments to the standard contract in order to bring it into compliance with the transport agreement between the organiser and OUGTS and the parties to the transport agreement will sign a standard contract without amending the material parameters of the contract (duration, volumes and tariff) without any financial penalties for the parties;
2.2.3 The organiser will apply to OUGTS to reserve capacity in the gas transmission system. The capacities to be reserved are to be in the following volumes:
2020: 65bn m³; 2021-2024 inclusive: 40bn m³/yr
on condition that, by the time of the reservation, there is a competitive tariff established by NKREKU that is recognised by the operator and that is equivalent to the level of transport tariffs that apply in central and eastern Europe.
The parties to the gas transport tariff intend in future to consider the possibility of extending their co-operation in the transport of gas on analogous grounds for the following regulatory periods of the organiser: 2025-2034.
3. By December 27, 2019 the parties will adopt the necessary measures/create the necessary conditions for the execution of the above-mentioned agreements by the relevant companies, including:
3.1 The European Commission guarantees and supports in writing the certification of OUGTS as the new operator of the gas transportation system of Ukraine in accordance with EU regulations and also that the legislation of Ukraine meets EU requirements, in the sphere of gas transportation.
3.2 The Ukrainian side has until December 29 to adopt all necessary measures/create all necessary conditions for:
The conclusion of global agreements with Gazprom according to paras 1.1 and 1.2 of this protocol;
The adoption of the final decision of the certification of the new OUGTS and the issue of a licence to OUGTS;
The guarantee of the legal validity of the decisions taken by NKREKU regarding the periods for booking capacity in 2019 and the possibility of the conclusion of a new transport agreement using the text agreed by the parties in accordance with point 2.2.2;
The assurance of the independence of the national regulator, the stability of the legislative regulation, the secure protection by law of the interests of the contractor of transit services, predictability, transparency, the economic justification for, and the stability of, tariff formation.
3.3 The Russian side will take the necessary measures/create the necessary conditions for Gazprom to perform its obligations with regard to the agreement envisaged in Para 1.1 about payment, in light of the decisions of the arbitration court of Stockholm of December 2017 and February 2018.
4. If the agreements envisaged in Paras 1-3 of this protocol are fully carried out, the parties will consider the possibility of deliveries of gas to Ukraine, priced against the German NCG hub and with discounts for volume.
Signatures:
Maros Sefcovic, Vice-president, EC
AB Ermak, assistant to the president of Ukraine
DI Kuleba, Vice prime minister of Ukraine for European and EuroAtlantic integration
AA Orzhel, Ukrainian energy and environment minister
DN Kozak, deputy chairman of the Russian government
AV Novak, Russian energy minister
AB Miller, of Gazprom
YY Vitrenko, of Naftogaz Ukrainy
SL Makogon, of OUGTS