22:14 GMT +317 January 2020
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    In December 2017 and February 2018, the Stockholm arbitration delivered judgments in the Gazprom-Naftogaz disputes on gas transit and delivery contracts, ordering the Russian gas giant to pay $2.56 billion to Ukraine's Naftogaz.

    Alexei Miller, Chairman of the Management Committee (CEO) of Russian energy company Gazprom, stated on Saturday that the company would sign an agreement with Ukraine's gas company Naftogaz, thus removing all mutual claims.

    "In accordance with the protocol on gas cooperation, Gazprom and Naftogaz will sign the agreement to settle mutual claims under existing contracts, thus restoring the balance of interests of the parties," Miller stated, adding that in accordance with the new agreement, the European Commission would guarantee transit consistency with the EU norms, while Kyiv would take on responsibility for independent regulation of transit and protection of customer interests.

    Miller added that the agreement would envisage "a waiver of any new claims, withdrawal of arbitration and legal claims that did not result in final decisions and payment in line with the verdict of the Stockholm court."

    Miller also stated that Naftogaz would broker Gazprom's gas transit to Europe.

    "Gazprom will sign an inter-operator agreement with the gas transmission system operator of Ukraine, and Naftogaz of Ukraine will sign a transport agreement on reserving capacities of the gas transmission system of Ukraine. Naftogaz will act as a transit organizing company, thus taking on the risks of the transition period," Miller said.

    The chairman of Gazprom's Management Committee pointed out that Gazprom and Naftogaz would consider supplying gas to Ukraine at prices based on NCG platform.

    On Friday, Gazprom said that Moscow and Kyiv had signed a protocol of an agreement on continuing gas transit and settling disputes during the negotiations in Minsk.

    The current gas transit contract between the companies is set to expire this year. In November, Gazprom sent Ukraine's Naftogaz an official proposal to extend the transit contract or enter into a new one for one year, taking into account the projected demand in the EU.

    Tags:
    Naftogaz, Gazprom, Ukraine, Russia
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