Naftogaz restarts import of Russian gas

Naftogaz of Ukraine (NAFTO), Ukraine’s leading natural gas producer and monopoly transporter, recommenced the import of Russian gas starting November 15, according to the company’s press release. It explained that the restart is a result of negotiations between the CEOs of Naftogaz and Gazprom that took place a day before.

Before the negotiations, Gazprom officials stated they were ready for compromises that may include extended delays in payments of Naftogaz’s debt to Gazprom. Anonymous sources cited by the Kommersant-Ukraina newspaper explained that as a result of the negotiations, Gazprom agreed that Naftogaz’s debt was USD 1.3 bln (before that, Gazrom claimed the total debt was about USD 2.0 bln, including bills for August and October) and Gazprom granted new delays in payments of this debt.

Naftogaz of Ukraine stopped imports of Russian gas on November 8, later explaining this move by its having met a 18 bcmpurchase plan for 2013. Gazprom, in turn, expressed its worries about the risk of interrupted Russian gas supply to EU countries through Ukraine, insisting that Ukraine’s storage facilities should accumulate at least 21.5 bcm of gas (vs. the current level of below 18 bcm).