Ukraine Expresses Optimistic Tone on Winter Gas Package

Ukraine has indicated that the terms of gas supply offered by Russia could be viewed as a basis for an interim solution for continuing supply to Ukraine and to ensure gas transit to the EU for the upcoming winter.

A statement from Naftogaz commented that the Ukrainian side is ready to sign a binding trilateral deal on Russian gas supply terms.

The Ukrainian side indicated however, that for the discussed solution to work, would heavily depend on actions of the governments of both Ukraine and Russia, as well as of the European Commission.

Ukraine called for a comprehensive binding deal to include both an addendum to the contract between Naftogaz and Gazprom and a binding intergovernmental protocol between Russia, Ukraine and the EU signed by authorized representatives on behalf of the governments of Russia and Ukraine as well as the European Commission.

Naftogaz said that any agreement should also provide the commitment of the European Commission to provide financial support to Ukraine to fund gas purchases.

In addition, the Ukrainian side called for the Russian government's commitment not to revoke the agreed discount based on customs duty revision till the end of 1Q 2016 as an essential prerequisite for the success of a deal.