Ukraine Transit Agreement

After intense negotiations, Russia and Ukraine signed a five-year agreement on the transit of Russian gas to Europe before the deadline. The agreement negotiated in Vienna was confirmed on 30 December by Russian and Ukrainian gas companies and Ukrainian President Wolodymyr Zelenskiy in a social post. The current agreement was due to expire on 31 December and has compromised Europe`s vital link with billions of cubic metres of gas from Russia via Ukrainian gas pipelines in the depths of winter. About 40% of the 200 billion cubic metres (bcm) of gas sent each year by Russia to Europe has been transferred through The vast network of Ukrainian gas pipelines. Energy relations between the two neighboring countries are part of a wider geopolitical struggle with the military occupation — Russia invaded Ukraine`s Crimea peninsula in 2014 and backed separatists in the east of the country – allegations of cyberwarfare, propaganda and international complaints about human rights violations and embezzled assets. In the past, Kiev and Moscow have repeatedly argued over gas prices and transit tariffs, so That European consumers are sometimes cut off from a major source of energy. – a fee regime against the existing 10-year transit contract, which expires at the beginning of the reception date on 1 January 2020. – Interoperational agreement between Ukraine`s new transport network manager, GTSOU, and Russian manufacturer Gazprom, which sets out the technical rules and rules of the interconnection agreement Some disputes have been settled, but not all The new agreement, according to Zelenskiy, provides that “both parties retain the right to extend the contract for a further 10 years” after its expiry. Russia is also part of the new treaty, which agrees to pay $2.9 billion to Ukraine as part of a Stockholm arbitration supplement, which Moscow did on December 27. In return, Naftogaz promised to release Gazprom`s confiscated assets in Europe, and both sides agreed to abandon mutual legal actions that have not yet been completed and to sign an out-of-court settlement.

However, state-level prosecutions, in particular Naftogaz`s claims against Russia concerning the confiscation of the company`s assets during the annexation of Ukraine`s Crimea peninsula, are not affected by the new transit treaty. On 21 December, Gazprom and Naftogaz said they had reached an interim agreement on the new agreement on the shipment of Russian gas by Ukrainian gas pipelines. But technical and other discussions on the details continued until the signing was announced. BUCHAREST (ICIS) Ukraine and Russia have signed a five-year transit agreement for guaranteed minimum quantities from 2020, Ukraine`s Naftogaz confirmed late on Monday evening. It has already signed interconnection agreements with Hungary, Moldova, Romania and Poland. It was also expected to sign an interconnection agreement with Slovakia, although it is not certain that the agreement was reached by 30 December. Slovakia itself, as a long-term transit agreement with Gazprom, expires in 2028. The Russian and Ukrainian presidents met on 9 December in Paris to discuss options for reaching an agreement on the Donbass and the terms of the new gas transit agreement. The discussions, known as the Normandy Summit, were mediated by France and Germany. Gazprom, Russia, said the agreements were part of a “big package to restore the balance of the parties` interests.” Representatives of Russia and Ukraine met in Berlin for “very intense negotiations” on the 10-year gas deal, which expires in two weeks. However, the terms of the agreement are not yet clear.

Under the transit agreement, Ukraine is expected to ship most of the gas to Central Europe and Moldova.