If Gazprom decides to increase the supply of gas to Europe, he will have to reserve the capacity of the Ukrainian GTS

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The transit of Russian gas through Ukraine to Europe from January 1, rose by 2%, and if Russia will need to put more than agreed in the contract, the rate will increase to a maximum of 45%. About it January 31, told the Russian newspaper RBC with reference to sources.

Officially, the company “Gazprom” and “Naftogaz Ukraine” did not disclose the rate of pumping volumes provided by the contract of December 30, 2019. Ukrainian President Vladimir Zelensky said that the five-year contract on gas transit, Ukraine will receive more than $7 billion.

From the draft of the agreement between the companies, which read RBC, it follows that the cost of pumping Russian gas to Europe through the Ukrainian gas transportation system will be $31,72 per 1 thousand m3, including all taxes and fees. The rate is calculated at the rate of $2.66, or 1 thousand m3 per 100 km., the Rate of pumping of Russian gas through Ukraine in 2019 were calculated at the rate of $2,61 per 1 thousand m3 per 100 km.

The total rate has increased, but it decreased the volume of gas flow through Ukraine, said a source close to the Russian side of the negotiations. In 2019, Gazprom pumped via the Ukrainian GTS around 90 billion m3, i.e. almost one and a half times greater than the current plan.

If Gazprom decides to increase the supply in excess of the amounts specified in the new contract, the company will have to reserve the capacity of the Ukrainian GTS. In this case, the contract provides multiplying factors for transit: reservation of additional capacity in the quarter will cost 1.1 times more than standard rates, for a month – in 1,2 times, on the day – 1.45 times. That is, the maximum growth rate will reach 45%, said the sources.

The minimum guaranteed upgrade on the new contract amounts to 65 billion m3 of gas in the first year and 40 billion m3 in the next four.

A 10-year contract between Ukraine and Russia on gas supply and transit expired on December 31, 2019.

30 December 2019 the Prime Minister of Ukraine Alexey Goncharuk has informed that “Naftogaz” and “Gazprom” signed a new contract on gas transit for five years.

Gazprom has paid Ukraine almost $3 billion by the decision of the Stockholm arbitration, the Russian and Ukrainian sides have agreed to nullify the mutual claims of lawsuits.