Long-term agreements on Turkmen Gas Supply to and transit via Ukraine signed

Yuri Boiko, Chairman of the Board of Naftogaz of the Ukraine and Alexey Miller, Gazprom

Yuri Boiko, Chairman of the Board of Naftogaz of the Ukraine and Alexey Miller, Gazprom

On 26 July, the city of Yalta hosted a meeting of Russian and Ukrainian Presidents with businessmen from the 2 countries. The parties achieved an accord to jointly scheme gas deliveries to the Ukraine.

To promote the agreement reached, Gazprom’s Headquarters hosted today a signing ceremony of a set of documents identifying terms and conditions of the Russian-Ukrainian cooperation in natural gas supplies and transit up to 2028.

Under the documents signed, Gazprombank and Raiffeisenbank’s 100% subsidiaries set up the 50%-50% RosUkrEnergo joint venture registered in Switzerland. The newly founded company will be managed by a Coordinating Committee to be formed from Gazprom, Naftogaz of the Ukraine, Gazprombank and Raiffeisenbank’s top executives. The world’s largest auditing businesses will be engaged to audit RosUkrEnergo and its operating highlights will be disclosed for anybody interested.

RosUkrEnergo will launch its activities starting 1 January 2005 based on Turkmen gas procurement agreements adopted with NAC Naftogaz of the Ukraine (for 2005–2006) and Gazexport (for 2005 and onwards, with gas amount to be gradually increased); based on an Agreement with Gazprom on gas transmission via Uzbekistan, Kazakhstan and Russia and based on an Agreement with Naftogaz of the Ukraine on sales of gas delivered to the Russian-Ukrainian border. Overall gas supplies will be increased from 44 bcm in 2005 to 60 bcm, over 2007 to 2028.

According to Alexey Miller, Gazprom’s Management Committee Chairman, “the papers signed open a new page in mutually advantageous cooperation in gas shipments to the Ukraine and create conditions for the growth of Gazprom’s gas exports to West Europe via the Ukraine”.

Yuri Boiko, Chairman of the Board of NAC Naftogaz of the Ukraine, was quoted as saying that “the agreements reached will ensure the needed long-term reliable and uninterrupted gas deliveries to the Ukrainian consumers and crediting entities’ involvement in the Project will allow the parties to channel large-scale investments in the expansion of gas transmission capacities along the route from Turkmenistan to the Ukraine”.

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