Putin declares Ukraine's conditions for Russian gas transit unacceptable

Illustration photo: EPA

Russia is ready to maintain gas transit through Ukraine, despite Ukraine's continued demands that Russia finds unacceptable, Russian President Vladimir Putin said at a press conference following talks with Serbian President Aleksandar Vucic on December 4, the Russian news agency TASS reported.

When answering the question about the possibility of stopping gas transit through Ukraine to Europe from January 1, 2020, due to the expiration of the contract between Gazprom and Naftogaz, Putin said: "I repeatedly say that we are ready to maintain transit through Ukraine, we are currently negotiating this in Vienna, this is no secret. However, the possible conditions that Ukrainian transit companies have proposed are economically unacceptable to us at this point."

At the same time, Putin also noted that he hoped these conditions would change through negotiations. “I hope that this is a bargaining position and that it will be possible to somehow coordinate and reconcile positions,” he said.

Talks between Russia and Ukraine were held in Vienna last week. On November 29, representatives of Gazprom and the Ukrainian gas transit system operator discussed technical issues related to the conditions for the transit of Russian gas to Europe from 2020. The two sides agreed to work together this week.

Russian Energy Minister Alexander Novak earlier noted that Russia and Ukraine could hold talks to resolve gas issues on December 5, if Gazprom and Naftogaz are ready.

The next round of consultations on the terms of transit and supply of Russian natural gas through Ukraine may be held on December 5, Ukrainian Energy and Environmental Protection Minister Aleksey Orzhel said on December 1.

The contract for gas supply and transit through Ukraine between Gazprom and Naftogaz ended on December 31, 2019. Russia, Ukraine and the European Commission continue to hold consultations on the transit of Russian gas to the EU through Ukraine after 2020, although the dialogue is complicated by disputes between Gazprom and Naftogaz.

Moscow has proposed a “package solution” that would include a settlement of the dispute and direct gas purchases at concessional prices. As a contingency, Russia is ready to extend the current transit agreement until 2020.

However, TASS reported that Ukraine was considering rejecting the dispute and signing an unacceptable short-term contract. Meanwhile, in November, Naftogaz CEO Yury Vitrenko announced that Ukraine would pump Russian transit gas to its underground storage facilities if it entered the country without a suitable contract by January 1, 2020.