Russia to triple gas exports to Ukraine

Russia

MOSCOW, April 6, 2015 – Ukraine’s national oil and gas company, Naftogaz, signed an interim contract with Russia’s Gazprom to triple the amount of gas supplied to the country during the month of April. An estimated 1 bcm (35 bfc) of gas will be delivered to Ukraine, equaling almost 33 mcm (1.17 bcf) per day, compared to 10 mcm (353 mcf) per day in March.

On April 2, Naftogaz transferred around $30 million to Gazprom to pay for the gas in advance. The terms of the contract stipulate that during the second quarter, Naftogaz will pay around $248 for every 1,000 cubic meters (35,315 cubic feet) on a take-or-pay basis.

The current agreement follows a June 2014 Naftogaz lawsuit in Stockholm claiming $6 billion in overpayments to Gazprom and demanding that the company provide a fair prices for gas. In order to meet winter demand and replenish dwindling supplies, Ukraine must purchase around 12 bcm (424 bcf) of gas.

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