In “Naftogaz” told about compensation from “Gazprom” and the decline in wholesale gas prices
In “Naftogaz” predict a decline in wholesale gas prices and compensation for high prices from the Russian “Gazprom”. However, it will happen when Ukraine will win the lawsuits and the amount of compensation will be in favor of Kiev.
“Now the price (wholesale in Ukraine) depends on the cost of imported gas, Naftogaz, and other importers to buy on the European market. And the cost of this fuel is formed, as a rule, on the basis of gas prices in the German hub plus transport costs to the border of Ukraine. The principle which was laid by the Tribunal (Stockholm arbitration), which belongs to the parties to implement the changes to the current contract is just the price of the European market. No shipping costs from the German hub to the border of Ukraine. Accordingly, in Ukraine the price in the wholesale market may be lower”, – explained chief commercial officer of the group “Naftogaz of Ukraine” Yuriy Vitrenko in an interview with “New time”.
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Non-brotherly price. The head of “Naftogaz” said that means Ukraine’s victory in court against “Gazprom”
The Ukrainian company also hopes that after trial on the transit of gas will begin to work an agreement to interconnect the network with the Eastern European neighbours.
“Then we and other market participants will be able to do a virtual reverse, use a tool such as swaps: receiving the gas to Ukraine, to change the volume of gas, say, in Germany. This opens up entirely new market opportunities and can lead to the fact that the price on the Ukrainian market for other buyers also descend to the level of “hub”. But it is necessary to win and our transit claim,” – said Vitrenko.
The Stockholm arbitration has already issued a separate decision concerning the abolition of the standards “take or pay” contract between Ukraine and Russia in 2009. However, the cancellation only applies to 2014 and 2015 (in 2016, the Ukraine did not buy Russian gas). Now “Gazprom” to compensate for “Naftogaz” the overpaid funds. However, the situation may change – the parties are awaiting a decision regarding the other claims and the overall picture may change.
We will remind, “Naftogaz” and “Gazprom” has filed counter-claims three years ago – under the terms and cost of transit of Russian gas through Ukraine to Europe, and also about the cost and conditions of the purchase and sale of gas for Ukraine. In may of this year the arbitration has taken the first stand-alone decision.