(Source: Daily News Bulletin; Moscow - English)
KYIV. Nov 25 (Interfax) - Agreements documented in Moscow allow
the Naftogaz Ukrainy national energy company to purchase 33.75
billion cubic meters of natural gas from Russia's Gazprom (RTS:
GAZP) next year, instead of 52 billion cubic meters envisioned by
earlier deals, a source in the Ukrainian government told Interfax.
Under the new documents, Ukraine can also deviate from the
aforementioned amount by 20% without having to pay fines, the source
said.
"The documents envision the possibility of reducing the volumes
by a further 20% to approximately 27 billion cubic meters," he said.
Under the contract signed by Naftogaz Ukrainy and Gazprom on
January 19, 2009 the take-or-pay condition was applied to 80% of the
overall yearly amount of Russian natural gas deliveries to Ukraine.
However, the ongoing financial and economic crisis has led to a
sharp decline in Ukraine's gas consumption. Ukraine pledged to
purchase 31.7 billion cubic meters of Russian natural gas in January-
October 2009, but bought only 18.85 billion cubic meters.
The Russian and Ukrainian prime ministers agreed at a meeting in
Yalta last week to decrease the volume of gas deliveries envisioned
in the two countries' contract for 2010, as well as not to fine
Ukraine for its failure to purchase the earlier set amount of
natural gas in 2009.
Naftogaz and Gazprom officials signed an additional document to
their 2010 contract in Moscow on November 24, allowing Ukraine to
purchase 33.75 billion cubic meters of natural gas from Russia next
year instead of 52 billion cubic meters.
(c) 2009 Daily News Bulletin; Moscow - English. Provided by ProQuest LLC. All rights Reserved.
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