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Gazprom

December 7, 2005

Comment on Naftogaz Ukrainy’s statement from 7 December 2005

As fairly emphasized in a Naftogaz Ukrainy press release, the 4 October 2001 Agreement between the Government of the Russian Federation and the Cabinet of Ministers of Ukraine on Additional Measures for the Russian Natural Gas Transit through Ukraine as well as annually signed Intergovernmental Protocols to the above Agreement are the top priority documents specifying the nature of relationships between Russia and Ukraine in the gas industry. The Protocols fix the rate of Russian gas transit via Ukraine over a year and transit services settlement regulations.

The 9 August 2004 Annex ?4 to the Contract on the Amount and Terms of Russian Natural Gas Transit through Ukraine between 2003 and 2013 does not abrogate the need to specify the terms of Russian gas transit via Ukraine in the Intergovernmental Protocols. In 2006 the aforesaid Annex will still be in force provided the Protocol for 2006 specifies that, firstly, the Russian gas transit services will be settled by gas supply and, secondly, the transit price will be fixed at US $50 per 1,000m?. If the Protocol is not signed or signed under other terms, the Annex will lose force as expressly stipulated in the Contract.

 

 

 

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