Ukraine's Naftogaz will not extend agreement on gas transit to EU with Russia's Gazprom after 2024

Ukraine's Naftogaz, the largest national oil and gas company in the country, will not continue transit of Russian gas after the contract expires in 2024.

Source: Oleksii Chernyshov, Chairman of the Board of Naftogaz of Ukraine, in an interview with Radio Liberty

Details: Naftogaz's CEO noted that Ukraine is ready to abandon gas transit, especially because Russia is not fulfilling the contract terms.

"Gazprom [Russian state-owned multinational energy corporation] is not paying according to its contract for the Sohranivka gas metering station (located in the occupied zone), so Naftogaz is not receiving enough funding to actually provide (transit – ed.) but is fulfilling  its obligations regardless, and is filing lawsuits against Gazprom seeking to make it fulfil its obligations," Chernyshov said.

However, Ukraine maintains transit solely to support its European partners.

"There are no other reasons, but we cannot deprive some EU countries, which are partners of ours, of the opportunity to receive natural gas and prepare for winter," Chernyshov explained.

Naftogaz's CEO added that the EU plans to completely stop consuming Russian gas by 2027, so it is not insisting on continuing Ukrainian transit.

Background: Naftogaz of Ukraine has filed a Request for Arbitration with the International Court of Arbitration at the International Chamber of Commerce and Industry in Paris regarding the actions of Russian gas company Gazprom. The company is claiming funds from Gazprom for the service of organising the transmission of natural gas through the territory of Ukraine, which Gazprom has not paid on time and in full.

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