“All aspects are now settled and reciprocal claims are removed. The transit of Russian gas through Ukraine will continue under conditions that will satisfy all parties,” Russian Prime Minister Dmitry Medvedev said. For his part, Ukrainian President Vladimir Selensky said that this agreement with Russia guarantees his country revenues of 7 billion US dollars. The Ukrainian government stresses that this transit agreement with Russia was necessary to protect thousands of jobs and lower tariffs for Ukrainian consumers. In addition, Naftogaz linked the success of negotiations with Gazprom to the US decision to impose sanctions on the Russian Nord Stream 2 gas pipeline project. Gazprom and Naftogaz have reached an agreement to organize the transport of gas on the territory of Ukraine. Naftogaz therefore plays the role of transit organizer and assumes the associated risks. Naftogaz, Ukraine`s state-owned gas company, said it received $2.9 billion from Russia`s Gazprom to resolve a dispute, which is part of a larger deal struck by the two companies earlier this month. Naftogaz and Gazprom announced on December 21 that they had reached an agreement on a five-year contract from January 1 to supply Russian gas to Europe via Ukraine`s pipelines.
As part of the deal, Gazprom agreed to pay $2.9 billion, awarded to Naftogaz in 2017 by a Stockholm arbitration judgment. Naftogaz agreed in exchange to drop another lawsuit filed earlier this year in Stockholm to claim nearly $12 billion in compensation from Gazprom. “Naftogaz confirms receipt of a $2.9 billion outstanding amount from Gazprom,” the company said in a tweet on December 27. The three agreements were signed to respect the protocol of the meeting that met in Berlin in Minsk from 19 to 20 December. (1) an interconnection agreement between WSWG and Gazprom establishing procedures and technical rules for cooperation between operators of adjacent networks; Ukraine`s gas transmission system operator has signed a transmission contract with Naftogaz and an inter-operator contract with Gazprom. These agreements are the culmination of important rounds of negotiations in recent weeks, during which Gazprom committed to pay a US$2.9 billion debt to Naftogaz as part of the Stockholm transit arbitration in February 2018. Naftogaz confirmed receipt of the silver on December 27, 2019. Gazprom and the Ukrainian Ministry of Justice have signed an irrevocable unanimous agreement to quash all current and potential future claims by Ukraine against the company arising from the resolution of the Antimonopoly Committee of Ukraine. It has already signed interconnection agreements with Hungary, Moldova, Romania and Poland. It was also expected that an interconnection agreement would be signed with Slovakia, although it is not certain that it would have been concluded before 30 December.
Slovakia itself, as a long-term transit agreement with Gazprom, which expires in 2028. (3) Transaction agreement between Naftogaz and Gazprom, under which both parties waive reciprocal rights arising from the 2009 contracts. On 30 December 2019, Gazprom and Naftogaz Ukrainy signed transit agreements for Russian gas through Ukraine for the period 2020-24, for a transit volume of €65 billion. m³ in 2020 and 40 billion.m³ per year after. In this overview, we analyze how the agreement was concluded, the terms of the agreement and the likely transit flows through Ukraine during the term of the agreement. We conclude that the agreement will provide gazprom with sufficient transit capacity in 2020 and from 2022, and by then we expect Nord Stream 2 and the Bulgarian and Serbian links with Turk Stream to be in service. . . .