Ukraine and Russia signed a 5-year natural gas transit deal for minimum guaranteed volumes of 65 billion cubic meters (bcm) for 2020 and 40 bcm between 2021-2024, Naftogaz said on Monday.
The deal came just 24 hours before the current agreement expires on Tuesday.
The Ukrainian company said that the agreement was about the gas transit details between Naftogaz and Gazprom setting conditions and transit volumes for the next five years.
According to the announcement, $2.918 billion compensation paid by Gazprom under the Stockholm Arbitration Awards of December 2017 and February 2018, and received by Naftogaz on 27 December 2019.
"Withdrawal from all arbitration proceedings where final decisions have not been rendered yet, lifting attachment from Gazprom’s property, assets and monetary funds and refusing from any future claims and proceedings under the contracts signed in January 2009," explained Naftogaz.
Naftogaz said that the issue of gas supply was not subject to the package agreements and the company noted Gazprom’s interest in resuming gas supply to Ukraine in future.
"The package deal also does not affect Naftogaz Group’s claims against the Russian Federation regarding the assets seized in Crimea," the company said.
The concluded agreements will provide Ukraine with guaranteed revenues from gas transit over the next five years.
"The major outcome of the negotiations is that we have received almost $3 billion from Gazprom, and ensured that the Ukrainian system will be able to operate without a loss over the next five years. The transit won’t be interrupted, and will be performed by the independent certified operator. We have demonstrated Ukraine’s reliablility as a transit partner for the EU," Naftogaz CEO Andriy Kobolyev said.
Russia exports around 200 bcm of natural gas to Europe per year. Gas transit via Ukraine to Europe was around 85 bcm in 2018.
By Murat Temizer