You're reading: Naftogaz CEO hopes for new round of gas talks in July

Naftogaz CEO Andriy Kobolev expects the next round of the trilateral gas talks involving Ukraine, Russia and the European Union will be held in July and stresses the need to agree on a new "winter package" by the end of September.

“We hope the next round will be held as early as in July. Unfortunately, everyone will be on holiday next month, and we would not like to drag things out until September,” he said in an interview with Channel 5 on Friday evening.

“We need to agree upon all terms of the winter package before the end of September,” Kobolev added.

He specified the matter concerns the terms of the new agreement, price, terms of gas supplies, prepayment conditions, the point of delivery.

The Naftogaz head said this year the position of Ukrainian companies is much stronger than a year ago, as the possibility of reverse purchases increased significantly. He noted that in 2014 initial negotiations were completed on June 16 and the final agreement was achieved only on October 30, however Naftogaz managed to pass the heating season and provide gas transit to Europe.

“I think they [the talks] will be held this month or in September,” Kobolev said, once again stressing that the Ukrainian side is interested in a full and a longer-term solution, while Gazprom’s proposal regarding discounts for a quarter is not interesting to Naftogaz.

Kobolev added Gazprom has to offer a discount, because without it the price of Russian gas under the 2009 agreements is non-competitive compared to the European one.

Commenting on reverse gas purchases, Kobolev noted that the main limitation is funding. According to him, Naftogaz is in talks both with international lenders and Ukrainian banks and hopes for their success.

He also said that at present Naftogaz is the only importer of gas to the country.

“There are no more those willing to buy,” he said.

As reported, trilateral gas talks held in Vienna on June 30, at which Russia proposed keeping the price of the second quarter ($247.17 per 1,000 cubic meters) for another quarter, ended without success. Naftogaz from July 1 refused gas purchases from Russia and currently receives gas from EU states.