contract with Gazprom for gas transit will not be extended – Kommersant

Ukrainian Energy Minister German Galushchenko said that the authorities do not plan to renew the contract for the transit of Russian gas with Gazprom (MOEX: GAZP). According to him, Ukraine is strengthening the country’s energy security and independence, including by increasing domestic gas production.

“I can confirm that we do not plan to enter into any additional agreements or prolong the validity of this agreement,” Mr. Galushchenko said during the telethon.

The agreement between Naftogaz of Ukraine and Gazprom was signed on December 30, 2019. It provides for pumping 225 billion cubic meters. m of gas, of which 65 billion cubic meters. m in 2020 and 40 billion cubic meters each. m – over the next four years. The contract expires on December 31, 2024. In January of this year, the government of Ukraine reported, which does not intend to renew the contract. Deputy Prime Minister Alexander Novak saidthat Russia is ready to discuss alternative routes for gas supplies to the EU.

On March 4, Prime Minister of Ukraine Denis Shmygal said that the country is ready to extend the transit of Russian gas after the contract with Gazprom expires at the end of 2024, but does not intend to negotiate this directly with Moscow. According to him, transit is possible if there is a corresponding request from European countries. Head of the Ukrainian GTS Operator Dmitry Lippa saidthat if Europe needs Russian gas, Ukraine is ready to provide it until 2027.

Why Europe’s dependence on gas from Russia is decreasing – in the Kommersant article “It’s not the weather that’s reducing demand.”

Lusine Balasyan