Gazprom submits USD 11.4 bln penalty to Naftogaz

Russian natural gas giant Gazprom (GAZP RX) has sent Ukraine’s Naftogaz (NAFTO) a USD 11.39 bln penalty bill for gas that it under-purchased in 2013, Interfax reported on April 24 citing a Gazprom top-manager Aleksander Medvedev. Naftogaz had to import at least 41.6 bcm of natural gas in 2013, according to an agreement (signed in 2009), while it bought only 12.9 bcm, according to the source. 

Ukraine imported 25.8 bcm of gas from Russia in 2013, and half of that amount was imported by the private company Ostchem. According to a comment from Ukrainian Energy Minister Yuriy Prodan, Ukraine had timely notified the Russian side on the smaller than contracted amounts of gas imports in 2013. He suggested that Gazprom go to court if it wants receive payment for such a penalty. 

Alexander Paraschiy: This time, Russia was not in a hurry to claim the penalty from Ukraine. In 2013, it sent its penalty (USD 7 bln for breaching “take-or-pay” in 2012)  in January. We understand that Gazprom is voicing the USD 11.4 bln penalty at this particular time in order to have more leverage on possible negotiations on gas pricing for Ukraine, involving Russia and EU. The negotiations may take place next week as the Russian side has suggested.