- Title: Russia, Ukraine outline terms for five-year gas transit deal to end row
- Date: 21st December 2019
- Summary: KIEV, UKRAINE (DECEMBER 21, 2019) (REUTERS) UKRAINIAN ENERGY MINISTER, OLEKSIY ORZHEL, WALKING TO MICROPHONE TO START NEWS CONFERENCE PHOTOGRAPHERS (SOUNDBITE) (Ukrainian) UKRAINIAN ENERGY MINISTER, OLEKSIY ORZHEL, SAYING: "What is very important is that there will be gas transit. What is very important is that the amount on money fixed by the decision of the Stockholm arbitration court will be made in monetary payments, and will be paid by the end of this year, if all the relevant points of the deal are implemented. It means that Ukraine, and Naftogaz company in particular, will receive 3 billion (USD), or to be precise a bit more than 2.9 billion by the decision of the Stockholm arbitration court." MEDIA (SOUNDBITE) (Ukrainian) UKRAINIAN ENERGY MINISTER, OLEKSIY ORZHEL, SAYING: "In this very case the package deal presumed the revision of the stands of the future arbitration lawsuits. Meaning the decision about 3 billion is firmed, and other lawsuits will be called off within this package deal." UKRAINIAN FLAG (SOUNDBITE) (Ukrainian) UKRAINIAN ENERGY MINISTER, OLEKSIY ORZHEL, SAYING: "What's very important is this -- This is a transit deal for five years with the option of extension to another 10 years, on the same conditions that we have now for the first five years." NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (Ukrainian) UKRAINIAN ENERGY MINISTER, OLEKSIY ORZHEL, SAYING: "At the same time I want to say thank you, and to underline the important role of the United States of America. We are very grateful for the consistent stand as for the development of new infrastructure. Without their position it would have been much harder. Many thanks again." MEDIA NEWS CONFERENCE ENDING, ORZHEL LEAVING
- Embargoed: 4th January 2020 14:03
- Keywords: Nord Stream 2 Ukraine Russia gas gas pipeline gas transit
- Location: KIEV, UKRAINE
- City: KIEV, UKRAINE
- Country: Ukraine
- Topics: Government/Politics,International Trade
- Reuters ID: LVA001BAX4MKN
- Aspect Ratio: 16:9
- Story Text: Russia and Ukraine announced terms of a new gas transit deal on Saturday (December 21), under which Moscow will supply Europe for at least another five years via its former Soviet neighbour and pay a $2.9 billion settlement to Kiev to end a legal dispute.
The deal is a major breakthrough for both countries, which have been seeking to resolve disputes over Ukraine's eastern Donbass region and the Crimea peninsula, which Russia annexed in 2014.
The Russian gas company would also pay Ukraine the $2.9 billion before Dec. 29, in line with the amount proposed in arbitration rulings between Gazprom and Ukrainian energy firm Naftogaz in 2018.
In exchange, Ukraine is expected to sign a legal settlement and withdraw all outstanding claims, also before Dec. 29, aiming to resolve the issue before the existing supply deal expires.
Russia's Gazprom and Ukraine's Naftogaz had gone to an arbitration court in Stockholm in a number of disputes over gas prices and transit fees dating back to 2014.
The presidents of Russia and Ukraine met in Paris on Dec. 9 to discuss options for a settlement over Donbass and terms for the new gas transit deal. The talks, known as the Normandy summit, were brokered by France and Germany.
Ukrainian Energy Minister Oleksiy Orzhel said on Saturday that under the new deal both parties had an option to extend the five-year term by another 10 years. He added that the transmission tariff for the Russian gas would rise.
The deal comes as U.S. President Donald Trump signed legislation on Friday that included provisions to impose sanctions on companies laying pipe for Nord Stream 2, a project that aims to double gas capacity from Russia along the northern Nord Stream 1 pipeline route to Germany.
Nord Stream 2, which will run along the Baltic sea floor, will enable Russia to bypass Ukraine and Poland to deliver gas.
The group behind Nord Stream 2 said on Saturday it aimed to complete the pipeline as soon as possible, after a major contractor suspended pipe-laying activities due to the U.S. sanctions.
(Production: Sergiy Karazy, Dmitry Turlyun) - Copyright Holder: REUTERS
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