Gazprom's Proposal To Extend Transit Contract With Naftogaz Unacceptable - Energy Minister

KIEV (UrduPoint News / Sputnik - 19th November, 2019) The proposal of Russian energy giant Gazprom to extend the current transit contract with Ukraine's Naftogaz, or conclude a new deal with both sides giving up claims in courts, is unacceptable, Ukrainian Energy Minister Oleksiy Orzhel said on Monday.

"On Monday, we get a sudden proposal from Gazprom. Let's be honest. The proposal that has been received is unacceptable for Ukraine, taking into account the fact that we would need to give up arbitration and sign an agreement for only one year of using our gas transportation system," Orzhel said during the "Freedom of Speech" show on the Ukrainian ICTV tv channel.

On Monday, Gazprom sent Naftogaz an official proposal to extend the transit contract or enter into a new one for one year taking into account the forecast demand in the EU, saying that the prerequisite for continued transit was that the sides must reciprocally give up claims in courts and antitrust authorities. At the same time, Gazprom said it was waiting for the position of the Ukrainian side regarding its readiness to directly purchase Russian gas from 2020.

Naftogaz Executive Director Yuriy Vitrenko said later on Monday that Naftogaz had received Gazprom's proposal and would study it carefully before responding.