Naftogaz and Gazprom agree prepaid daily gas deliveries

Naftogaz of Ukraine and Russian gas giant Gazprom have signed an additional agreement that will regulate daily gas deliveries to be paid for upfront, Ukrainian Energy and Coal Industry Minister Yuriy Prodan said after the trilateral gas talks in Brussels.

Naftogaz of Ukraine and Russian gas giant Gazprom have signed an additional agreement that will regulate daily gas deliveries to be paid for upfront, Ukrainian Energy and Coal Industry Minister Yuriy Prodan said after the trilateral gas talks in Brussels.

"All technical issues concerning our relations over the period from November to March have been resolved as part of a so-called technical agreement between Naftogaz and Gazprom. It offers a very precise payment mechanism and will regulate daily volumes of gas consumption. We hope that, having signed such an agreement, Naftogaz of Ukraine and Gazprom will cooperate properly, will provide gas to consumers in Ukraine and ensure the reliable transit of gas to countries of the European Union," he said.

Under the latest agreements, Russia will resume gas supplies to Ukraine after the first $1.45 billion (debt for November and December 2013) is transferred to Gazprom's accounts as part of Kyiv's efforts to pay off its gas debts, and after Ukraine pays upfront for the gas amounts requested by Naftogaz, Prodan said.

Naftogaz of Ukraine plans to purchase up to four billion cubic meters of natural gas from Russia in November and December 2014, the minister said.

"It [four billion cubic meters of gas] is a target. But, as has already been said, we now have to pay in advance, and, under our agreements, we can request and pay for any amounts that we may need to buy," he said.

Ukraine to buy Russian gas at $378/1,000 cubic meters in Q4 2014, $365/1,000 cubic meters in Q1 2015 - Yatsenyuk>>>

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