Gazprom, Naftogaz Strike Deal on Reduced Russian Gas Supplies for Ukraine

The Russian energy company Gazprom and the Ukrainian Naftogaz have signed additional protocols to their gas supply contracts.

The new agreements stipulate the reduction of Russian gas supplies to the Ukraine for 2010 – from 52 billion cubic meters down to 33,75 billion cubic meters – amending the quantities agreed in January 2009.

Ukraine has requested the reduction over the decline of its industrial activity as a result of the economic crisis.

Meanwhile, Ukrainian President Viktor Yushchenko stated that Ukraine needed to increase its transit fees for Russian natural gas to the European level, comparable, for example, to the fees of Slovakia, which would bring Naftogaz additional USD 2,5 B. Yushchenko has said the transit fees must go up from the current USD 1,7 per 1 000 cubic meters to USD 4,5-5,5 per 1 000 cubic meters.