Ukraine puts loss from gas contracts with Russia at $32b

Ukraine’s state-run energy company Naftogaz estimates its economic damage from the 2009 gas contracts with Russia at 32 billion US dollars, the company’s chairman Andriy Kobolev said on Friday.

“We have irretrievably lost 32 billion dollars. This includes overpayments, fines, and other components,” Kobolev told a press conference in Kiev.

In 2009, Ukraine and Russia signed agreements on the supplies of Russian gas to Ukraine and on its transit to Europe via the Ukrainian

territory. Both deals expire this year.

In particular, the gas supplies contract included the “take-or-pay” clause, which obliged Ukraine to pay for the agreed amount of gas whether it uses it or not, while the transit contract obliged Russia to supply the contracted volume of gas for transit via Ukraine.

Since 2014, Ukraine and Russia have been embroiled in two separate legal disputes regarding the transit of gas and gas purchases.

 

Ukraine puts loss from gas contracts with Russia at $32b

Ukraines state-run energy company Naftogaz estimates its economic damage from the 2009 gas contracts with Russia at 32 billion US dollars, the companys chairman Andriy Kobolev said on Friday. We have irretrievably lost 32 billion dollars. This includes overpayments, fines, and other components, Kobolev told a press conference in Kiev. In 2009, Ukraine and Russia signed agreements on the supplies of Russian gas to Ukraine and on its transit to Europe via the Ukrainian territory. Both deals expire this year. In particular, the gas supplies contract included the take-or-pay clause, which obliged Ukraine to pay for the agreed amount of gas whether it uses it or not, while the transit contract obliged Russia to supply the contracted volume of gas for transit via Ukraine. Since 2014, Ukraine and Russia have been embroiled in two separate legal disputes regarding the transit of gas and gas purchases.