Ukraine sets new tariffs for Russian gas transit to Europe

Ukrainian Minister of Energy and Environmental Protection of Ukraine Oleksiy Orzhel (L) and Executive Director of NJSC Naftogaz of Ukraine Yuriy Vitrenko (R) speaks during a briefing for media in Kiev, Ukraine, 21 December 2019. [Stepan Franko/EPA/EFE]

Ukraine has approved tariffs for Russian gas transit and granted a licence to its new gas pipeline system operator, the necessary steps on the way to complete a new 5-year deal for Russia’s gas supply to Europe, its regulator said on Tuesday (24 December).

Ukrainian Energy Minister Oleksiy Orzhel was quoted by RIA news agency as saying that Kyiv plans to secure as much as $15 billion from the tariffs over the next five years, on par with its current earnings from the transit of Russian gas.

The country is a key transit route for Russian piped gas exports to Europe and the existing deal between the two post-Soviet countries expires at the end of 2019.

Russia, Ukraine and the European Commission agreed in principal on a new deal last week, with a new contract and other agreements between Russian and Ukrainian system operators due to be signed by Sunday.

Russia, Ukraine agree 'in principle' new gas deal, signature expected in Minsk

Russia, Ukraine and the European Commission, after hours-long talks on Thursday, agreed in principle on a new gas deal starting after 1 January 2020, European Commission Vice President Maroš Šefčovič told a briefing.

Ukraine is a key transit route for Russian …

The Ukrainian national energy market regulator said that it had approved the tariffs for Russian gas transit at $16.01 a day per 1,000 cubic metres at the border with Russia and at $9.68 a day per 1,000 cubic metres at the border with Slovakia.

The exact amount Russian gas giant Gazprom pays depends on the volume it books for transmission.

The setting of tariffs became possible after Russian energy giant Gazprom has agreed to pay $2.9 billion to its Ukrainian counterpart Naftogaz to settle a long-running dispute over transit fees for gas transported to Europe.

Russia's Gazprom pays $2.9 bn to settle Ukraine dispute

Russian energy giant Gazprom has agreed to pay $2.9 billion to its Ukrainian counterpart Naftogaz to settle a long-running dispute over transit fees for gas transported to Europe, Russian news agencies reported on Saturday (21 December).

Gazprom and Naftogaz will meet on 26 December to discuss final details for a gas contract between the two countries, Naftogaz Executive Director Yuriy Vitrenko said on Tuesday.

Naftogaz hopes that the process will be completed on 27 December, Vitrenko said on Facebook.

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