Ukrainian and Russian sides agreed to take time to consider the proposal thoroughly on gas transit between Gazprom and Naftogaz, according to Naftogaz on late Monday.
The Ukrainian company said that Brussels hosted Ukraine-EC-Russia negotiations on gas transit through Ukraine after 2019 when the current transit contract expires.
According to Naftogaz, the parties communicated their positions regarding transit options for Russian gas.
Commenting on the proposal of the Russian side to extend the current contracts, Naftogaz CEO Andriy Kobolyev said that the Ukrainian side was ready to consider future contracts if they fully complied with European energy legislation implemented in Ukraine.
Kobolyev said that only a contract based on European principles would fully secure Ukraine’s interests and prevent Russia from non-market and non-competitive actions it had repeatedly demonstrated in the past.
'This position was shared by the European Commission whose representatives acclaimed Ukraine’s material progress in the implementation of European legislation in its domestic gas market,' Naftogaz said.
Naftogaz said that the commission also noted the validity of the previous arbitration rulings as well as Naftogaz’s right to initiate further claims.
'The commission prepared and tabled its proposal regarding the framework for Russian gas transit through Ukraine after 2019,' it said.
According to the proposal, the new gas transit contract should be long-term -- 10 or more years -- and provide for transit volumes that would be economically viable for a high-profile European investor.
The European side also emphasized that the contract should be concluded according to European legislation implemented in Ukraine, which includes standard interconnection agreements between the Ukrainian transmission system operator and those of all neighboring countries, the company said.
The next meeting is expected in this spring, according to the statement.
Ukraine earns around $3 billion in Russian gas transit fees per year.
Russian gas exports via Ukraine were 93.5 billion cubic meters (bcm) in 2017 and 82.2 bcm in 2016.
By Murat Temizer
Anadolu Agency
energy@aa.com.tr