Naftogaz: Russia violates Brussels protocol by failing to supply prepaid gas to Ukraine

Naftogaz ordered 114 million cubic meters in line with the “Winter Package” supply conditions, but Gazprom delivered only 47 million cubic meters. Naftogaz considers this failure to deliver prepaid gas a violation of the Binding Protocol signed by Russian Energy Minister Alexander Novak, European Commission Vice President Guenter Oettinger and Ukrainian Energy Minister Yuriy Prodan on October 30, 2014 in Brussels.

Notice of this breach of contract and of the Brussels Binding Protocol was sent today to the Cabinet of Ministers of Ukraine, the European Commission and the Energy Community Secretariat.

On February 19, Naftogaz ordered 114 million cubic meters of gas through the Sudzha, Pysarivka, Sokhranivka, Valuyki, Kobrin and Mozyr metering stations. According to paragraph 3.3, supplement 33 (30 October 2014) to the 19 January 2009 contract for the supply of natural gas, the buyer is entitled to make a daily order ranging from zero to 114 million cubic meters of natural gas. The seller, in turn, is obliged to fulfill such a request in full if the application was filed two days in advance. The legally permitted deviation from the requested daily delivery order volume is not more than 6%.

As of February 19, Naftogaz’s remaining prepaid balance with Gazprom stood at 454 million cubic meters. As of February 23, Naftogaz’s remaining prepaid balance with Gazprom stands at 287 million cubic meters.

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