Ukraine and Russia sign gas transit agreement

Kiev and Moscow have announced that, following difficult negotiations, they signed an agreement on the transit of Russian gas to Europe through Ukraine, which removes the risk of a potential new crisis occurring practically in the middle of the winter.

– Ukraine has signed an agreement on transit for five years. Europe knows we won’t let it down – Ukrainian President Volodymyr Zelensky tweeted, and the information has been confirmed by Gazprom CEO Alexey Miller.

– A range of documents have been signed – Miller said and specified that this would enable the continuation of “gas transit after December 31”, when the current agreement expires, Russian media report.

These documents finalize the Agreement on Understanding about Transit, signed by the two parties on December 20 after several months of difficult negotiations, which involved the European Union.

Despite this general agreement, the negotiations about its finalization were tense and there was fear that they would fall through at the last moment, which would jeopardize the supply of European countries.

Under the new agreement, Gazprom is to send at least 65 billion cubic meters of gas through Ukraine next year and then at least 40 billion each year between 2021 and 2024, Zelensky said and added that the transit would bring over USD 7 billion to Kiev.

The agreement is a part of a wider agreement by which Gazprom paid USD 2.9 billion in penalties and interest to the Ukrainian company Naftogaz, ending the longstanding legal battle waged at international courts. On its part, Naftogaz gave up on all other court procedures against Gazprom in Ukraine and the West.

The agreement between Russia and Ukraine helps avoid a new gas war between the two neighboring countries. The two previous gas disputes affected the supply in Europe in January 2006 and January 2009.

Gazprom Moscow

Naftogas Ukrajina

Gazprom

Naftogaz

gas agreement of Ukraine and Russia

Alexey Miller

Volodymyr Zelensky

gas transit