“Naftogaz” offers “Gazprom” to change the balancing gas account

“Naftogaz” offers “Gazprom” to change the balancing gas account

The Ukrainian side took the initiative to go to the European technology control balancing gas, providing for the classification of quantities of raw materials in the period following the reporting one.

KIEV, 16 Feb. “Naftogaz” offers “Gazprom” to adopt European technology accounting balancing gas, according to a press release of the Ukrainian company.

Gazprom earlier accused “Naftogaz of Ukraine” in the unauthorized settling Ukraine gas 5,861 million dollars, a decision by arbitrators is expected before the end of January 2017. Naftogaz called the accusations groundless.

“European practice balancing provides for the classification of these amounts by the parties in the period following the reporting one. Gazprom, in turn, insisted on payment by Naftogaz of penalties for balancing gas, formed at the end of each month in which there was no import of Russian gas for Ukraine. To resolve the dispute, the volume of gas balancing is accounted for by Naftogaz as gas belonging to “Gazprom”, — stated in the message “Naftogaz”.

Balancing gas is produced due to technical features of the transport when the volumes pumped into the gas system in each period do not correspond to the amounts transferred to the neighboring system with the accuracy to cubic meters.

“Naftogaz of Ukraine” October 13, 2014 appealed to the Stockholm arbitration a request for arbitration to “Gazprom”. In particular, the Ukrainian company demanded to oblige “Gazprom” to compensate for not delivering the transit volumes of gas in the amount of 3.2 billion dollars, plus interest on that amount. Naftogaz also claimed to recognize that the transit tariff in the contract shall be modified in such a way as will be shown in further written statements of Naftogaz in accordance with the basic principles of Swedish contract law.

The estimated requirements amounted to 6.2 billion dollars. Poesie “Naftogaz of Ukraine” filed a lawsuit, significantly increasing the amount of their claims — according to various estimates, up to 11-16 billion.