Agreement reached on gas supplies to Ukraine for the winter period

Submitted on Fri, 09/25/2015 - 22:00

On 25 September 2015 in Brussels Minister of Energy of the Russian Federation Alexander Novak, Vice-President of the European Commission Maroš Šefčovič and Minister of Energy and Coal Industry Volodymyr Demchyshyn reached an agreement on gas supplies to Ukraine for the autumn and winter period 2015/2016 as a result of trilateral consultations.

Accordingly, Ukraine takes an obligation to purchase 2 bcm of Russian natural gas. These deliveries will be financed through loans provided to Ukraine under assistance of the European Commission. 

The Russian side will grant Ukraine a discount on the contract price in the amount of about 20 USD per 1,000 cubic meters. The agreements cover the period until the end of March 2016. 

Following the consultations, Mr. Novak noted that Russia would continue fulfilling all conditions of the contracts on gas supplies to Europe, adding that the “winter package” format already applied during the last autumn and winter period had proved to be successful. 

“We hope that all parties will fulfil their obligations, and in future we will try to revert to normal business practices in accordance with the current contract valid until 2019”, the Minister said. 

Mr. Šefčovič noted the EU would continue to work with the aim of ensuring conditions are in place for Ukraine to purchase the Russian gas.

Mr. Demchyshyn said the price agreements reached are acceptable for Ukraine.