Gazprom’s Headquarters today has hosted a working meeting of Alexey Miller, Management Committee Chairman, Gazprom, Ivan Plachkov, Ukrainian Fuel & Energy Minister and Alexander Bolkisev, Chairman of the Board, Naftogaz of Ukraine.

The main focus of the meeting fell on the Ukrainian gas balance in the second half of 2006, with special attention paid to the absence of gas needed by Naftogaz of Ukraine to fill underground gas storage facilities for subsequent supply to the population, utilities and budget sponsored companies of Ukraine during the 2006-07 autumn/winter heating season.

At the suggestion of the Ukrainian side the meeting reviewed the issue of further operations by the International Consortium for the Ukrainian Gas Transmission System Management and Development and decided to shortly convene a meeting of the Consortium members.

The parties also deliberated on the matter of repaying Ukraine’s debt for the gas supplied by RosUkrEnergo in the first half of 2006. The Ukrainian side stated that the debt would be partially repaid until the end of July.

Reference:

On January 4, 2006, Gazprom and Naftogaz of Ukraine settled the issues of cooperation in the gas sector, achieving the accord that starting from January 1, 2006 Gazprom would supply gas to RosUkrEnergo under a pricing formula fixing the initial price of gas at US$ 230 per 1,000 cu m. Gazprom and RosUkrEnergo entered into a relevant five-year contract. RosUkrEnergo’s import portfolio also includes gas of Central Asian origins.

The agreed tariff for Russian gas transmission across Ukraine makes up US$ 1.6 for 1,000 cu m per 100 km and is to be paid for in cash.

On February 2, to promote the January 4, 2006 agreements, Naftogaz of Ukraine and RosUkrEnergo set up the 50/50 Ukrgaz-Energo joint venture specializing in the supply of natural gas and other energy to Ukrainian consumers.