06:59 GMT24 January 2021
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    Ukraine's Naftogaz says it will suspend purchases of natural gas from Russia's Gazprom.

    MOSCOW (Sputnik) — Ukraine's Naftogaz said Tuesday it will suspend purchases of natural gas from Russia's Gazprom starting July 1 as the sides have failed to agree the price for the third quarter of 2015.

    "Naftogaz suspends purchases of gas from the Russian company as the previous additional agreement to contract between Naftogaz and Gazprom expires on June 30 while the sides failed to agree new conditions for gas deliveries during today's trilateral talks in Vienna," the Ukrainian company said in a statement.

    "The transit of gas through the Ukrainian territory to Gazprom customers in Europe under the existing contracts will continue in full," Naftogaz stressed.

    Energy Minister Volodymyr Demchyshyn said Tuesday that Ukraine was not satisfied with Russia's recent gas price offer of $247 per 1,000 cubic meters and would insist on a 30-percent of discount to the contractual price.

    "We believe that the discount must be calculated in the format of the 'winter package' of the last year, which, as you remember, was $100 or 30 percent of the contractual price," Demchyshyn said after a fresh round of trilateral gas talks in Vienna.

    "The Russian side believes that this amount [$40} is fair, but we disagree," Demchyshyn stressed.

    "Russia insists that the gas price be determined for each new quarter and the next talks in September must determine the base price for the fourth quarter…but we believe that such an approach does not allow us to reach an optimal purchases volume to fill underground storage facilities," the minister said, adding that Kiev insists on signing a trilateral agreement on supplies for the whole heating season.

    Russian Energy Minister Alexander Novak later expressed surprise at Kiev’s dissatisfaction with Moscow’s offer, saying that the new $247 price is lower than current global gas prices.

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    Tags:
    gas, Gazprom, Naftogaz, Russia, Ukraine
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