Naftogaz sends proposals to Gazprom on revising gas price

The Ukrainian national energy company Naftogaz Ukrainy has forwarded a pre-arbitration note to Gazprom, proposing its terms to settle disagreements regarding the 2009 gas supply contract through negotiations, Naftogaz reported on Thursday.

The Ukrainian national energy company Naftogaz Ukrainy has forwarded a pre-arbitration note to Gazprom, proposing its terms to settle disagreements regarding the 2009 gas supply contract through negotiations, Naftogaz reported on Thursday.

The Ukrainian company proposed revising several key provisions of the contract, the principal one being the price at which Ukraine is buying gas from Russia.

"The matter involves both the price for gas offered to Ukraine starting April 1 this year and the price that Naftogaz Ukrainy has had to pay in the past. The latter automatically calls into question the size of the debt for gas consumed in the past periods, the settlement of which Gazprom is currently demanding," it said.

If the parties fail to come to an agreement through negotiations within 30 days, all issues not settled through negotiations will be referred to the Arbitration Institute of the Stockholm Chamber of Commerce.

Ukraine insists that a fair market-based price should be $268.1 per 1,000 cubic meters of gas, while Gazprom has charged it about $480 per 1,000 cubic meters.

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