“The USD 614 million arrears for the gas supplied in 2008 haven’t been cleared. The Ukrainian side is showing no initiative to sign the contract for gas supply in 2009. Instead of this, Naftogaz Ukrainy refuses to recognize the existing transit contract and grossly violates its commitments under it.

The Ukrainian side declares its commitment to the Energy Charter Treaty and simultaneously sends a letter threatening to confiscate the gas intended for transit, proclaims its intent to ensure the transit but instead stops the Orlovka gas compressor station pumping gas to the Balkans, criticizes Gazprom’s stance as unconstructive and, while we despite the New Year holidays have been attempting to find a way out of the crisis situation for the fourth day running, stays in Kiev and doesn’t resume the talks.

Here are the figures: over the past twenty-four hours we have fed 295 million cubic meters of gas at the entry point of the Ukrainian gas transmission system, which is a little more than requested by European consumers. Nevertheless, we have received only 270 million cubic meters at the exit point. 25 million cubic meters of gas has been stolen. Minus another 25 million cubic meters of gas in underground storage facilities not received from Naftogaz by RosUkrEnergo for its export operations. In total, European consumers have not received 50 million cubic meters of gas during the last twenty-four hours through Ukraine’s fault.

Under these conditions Gazprom is delivering extra gas volumes via other corridors – Belarus and the Blue Stream gas pipeline. The Company is also utilizing its gas reserves stockpiled in European UGS facilities. Given the increased amount of requests, more gas will be fed via the Ukrainian route too – 308 million cubic meters during the next twenty-four hours.

Considering that the observers invited by Gazprom are still not admitted to gas metering stations in Ukraine, we have sent a letter to the European Commission asking for independent monitoring of gas transit volumes via Ukraine. In parallel, we are preparing a lawsuit against Naftogaz Ukrainy’s moves to be filed with the Stockholm international arbitration court.

We are calling on our Ukrainian colleagues to return to the negotiating table,” stated OAO Gazprom official spokesman Sergey Kupriyanov.