Ukraine is expecting the gas transit agreement to generate annual revenue of $2-3 billion for the next five years, Energy and Environmental Protection Minister Oleksiy Orzhel said.
The government website quoted Orzhel as saying following the Russian gas transit talks that “one of the conditions set by Ukraine at those negotiations was Gazprom’s payment of $2.9 billion awarded by the arbitration court in Stockholm. We have received these funds. Plus, considering full engagement of the Ukrainian gas transmission system and the fact that new gas delivery routes to Europe will not emerge for a long time, our transit earnings will amount to $2-3 billion annually for the next five years.”
Prime Minister Oleksiy Honcharuk, in turn, underlined the importance of the five-year contract on Russian gas transit to Europe via Ukraine.
“Our team has protected the national interests of Ukraine and has ensured acceptable terms for the gas contract. In signing this document, we were guided by the priorities of Ukraine’s energy security and the wellbeing of our citizens. Thanks to this contract, Ukraine will maintain stability on the domestic and European gas markets. That will have a positive effect on energy markets and serve as a significant factor in reducing gas market prices,” the website quoted Honcharuk as saying.
The Ukrainian gas transmission system will transport 65 bcm of Russian national gas in 2020 and 40 bcm of gas per year for the next four years. The actual amounts may be larger.
