Russia is not an acceptable place for Ukraine’s Naftogaz to convene negotiations with Gazprom, Naftogaz’s press service reported on June 8. The Ukrainian state gas monopoly confirmed its readiness to negotiate with Gazprom in Brussels or any other place in the European Union.
On June 6, the Russian media reported that Gazprom Deputy CEO Aleksandr Medvedev invited Naftogaz to Moscow to start negotiations on the transit of Russian gas through Ukrainian territory after 2019, when the current transit contract terminates. “As they are providing us (transit) services, there is nothing malicious about them coming to us,” Medvedev said.
Alexander Paraschiy: Both Naftogaz and Gazprom are interested in continuing transit of Russian natural gas though Ukraine to EU countries. At the same time, the tone of the “invitation” of Gazprom for the talks may signal that the Russian monopoly is going to insist on its own conditions for the talks.
For the Ukrainian side, which insists on complying with EU rules on transit, such negotiations look indeed unacceptable. As the views of the Ukrainian and Russian sides on future transit differ significantly, there is a high risk that transit of Russian gas through Ukraine will stop as of 2020, which may lead to a significant worsening of Ukraine’s trade balance.