Russia & Ukraine to drop reciprocal claims and lift asset seizures as part of new gas transit agreement

Transit of Russian gas by Ukraine will be carried out on mutually beneficial and acceptable conditions for both parties, according to Russian Energy Minister Alexander Novak.

Novak said in an interview with Russia 24 TV that “A contract will be signed between Gazprom and Naftogaz for providing services as an entity that will act as the organizer of transit. These are commercial agreements which are mutually beneficial.”

He added that starting from January 1, Russia and Ukraine will cancel mutual claims while asset seizures will be lifted.

“We have agreed to start from scratch on January 1, reciprocal claims will be nullified, property seizures will be lifted due to court rulings in legal claims,” ​​the minister said.

Moscow and Kiev sealed a gas cooperation protocol on December 20 to secure Russian gas transit after expiration of the current contract. Russia’s Gazprom said last week it would settle court disputes with Ukraine’s Naftogaz, and anti-monopoly disputes with the Ukrainian government by December 29.

Under the new protocol, Naftogaz should reserve capacities for transporting 65 billion cubic meters of gas in 2020 and 40 billion cubic meters annually in 2021-2024.

The protocol also includes legal dispute settlement arrangements. According to them, Gazprom will have to pay Naftogaz $2.9 billion in compliance with the Stockholm arbitration ruling and the sides will have to sign an agreement on dropping lawsuits for which there is no final decision. The Ukrainian government will have to ink a settlement agreement with Gazprom on $7.4 billion in antitrust claims.

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