Tuesday, January 17, 2017

Gazprom billed Naftogaz for $5.3 billion – RBC

Photo: Valery sharifulin/TASS

Gazprom demanded that Naftogaz within ten days to pay $ 5.3 billion for gas that was contracted but not purchased in the second and fourth quarters of 2016. The total amount of requirements of the Russian monopoly to Kiev exceeded $ 37 billion.

“Gazprom” put “Naftogaz” for the second—fourth quarters of 2016, the $ 5.3 billion to pay for gas that was contracted last year but not selected, the message of the Russian company, received by RBC.

the Bill must be paid within ten days, the message “Gazprom”. Under the current contract between the Russian and Ukrainian companies “Naftogaz” is obliged annually to pay the minimum annual quantity of gas is provided by the rule of “take or pay”.

“the Year is over, so bill”, — told RBC press Secretary of the Gazprom management Committee Chairman Alexey Miller Sergey Kupriyanov. He said that in the first quarter of 2016 for “Naftogaz” operating conditions “winter package” of gas sales and the agreement on the fact that in this period contract the condition “take or pay” gas supply to Ukraine has not been applied. In September 2015 the Ministry of energy of Ukraine and Russia, and the European Commission signed the binding Protocol and the Addendum to the contract for the supply of gas between “Gazprom” and “Naftogaz”, he recalls: the agreement is concluded for the winter 2015/16 years to create conditions for the uninterrupted transit of Russian gas to Europe, Kupriyanov said.

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“Naftogaz” has not yet responded to the request of “Gazprom”, said the interlocutor of RBC. A representative of “Naftogaz” has not yet responded to the request.

“Take or pay” is not just a condition written into the contract. This is a fundamental, basic principle of operation of the gas industry. It obliges the supplier to reserve mining and transport capacity for the contracted volume of gas and ensures that this gas will be sold only to the specified in the contract the buyer”, — said Miller on Tuesday, January 17 (his words are in a separate message of “Gazprom”). “All of it: and a considerable reserve capacity, when we are talking about daily volume of more than 100 million cubic meters, and ongoing operational costs, and the inability to sell the gas to someone else — definitely has to the buyer a significant price,” he added.

In September 2016 at the Stockholm Arbitration court began hearings on the counter-claims of “Gazprom” and “Naftogaz”. “Naftogaz of Ukraine” believes that earlier Ukraine bought Russian gas at inflated prices, and requires compensation. In addition, Kyiv seeks compensation for the reduction in transit volumes. Under the claim “Gazprom”, the company demanded $ 31,75 billion for gas supplies on a “take or pay” and return the debt for 2013-2014, which “Naftogaz” does not recognize. The majority of the requirements of the Russian companies associated with the condition “take or pay” — $ 29.2 billion, and given the accounts for the year 2016, exhibited on Tuesday, at $ 34.5 billion (total amount of claims — $ 37,05 billion).

And according to the annual report of “Naftogaz”, published in September 2016, the Ukrainian company demands from “Gazprom” for a total of $ 28.3 billion (mid-December 2016) and the Russian monopoly — $ 38.7 billion (including penalties and interest). “If you lose on the first claim, if “Gazprom” will be able to prove that the position of “take or pay” Naftogaz needs to reimburse the amount, the payment of the $ 38 billion will be unaffordable for the company”, — said CEO of the Ukrainian company Andrey Kobelev in an interview with “channel 24″ on 14 December.

Anatoly Yushin, managing partner of law office “Yushin and partners”, believes that the current expense of “Gazprom” will include in the requirements for claims in Stockholm, which already included the financial requirements to pay for unselected Ukraine gas on a “take or pay”. By law, it is lawful, as to the court’s decision, expected in March 2017, the requirements can both increase and decrease. He recalled that the contract between the companies continues to operate and a condition “take or pay” it hasn’t been removed. According to the lawyer, the peaceful resolution of this issue is possible only if the political will on both sides. While relations between the two countries strained, the gas issues will be resolved in the international courts, he concludes.

the Dispute over “take or pay”

In October 2012, Gazprom for the first time he lost a court a fundamental condition of international contract — the scheme “take or pay”. The Vienna arbitration confirmed the right of the Czech RWE Transgas can reduce the volumes of purchases without penalty.

“Gazprom” and RWE sued over advance payment for the unselected minimum annual volumes of gas in 2008-2011. The case was heard by the Vienna court of arbitration, the amount of the claim of “Gazprom” was $ 500 million

“Take or pay” contract, implying that the buyer must pay at least a certain amount of gas regardless of how much he has purchased in fact, during the period.

contract, which expires in 2019, Ukraine should buy 52 billion cubic meters of gas per year or pay this amount, even if not takes it. However, from November 2015, it does not buy gas in Russia and is ready to resume purchases only upon signing of the additional agreement to the contract abolishing the principle of “take or pay”.

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