Today, as part of the working visit of Russian President Dmitry Medvedev to Ukraine, Kharkov saw the signing of addenda to the natural gas supply contract between Gazprom and Naftogaz Ukrainy of January 19, 2009.

The annual contract volume of gas in 2010 is increased to 36.5 billion cubic meters.

Naftogaz Ukrainy will pay for gas with a discount equal to a reduction of the export duty on gas deliveries to Ukraine, which is set by the Russian Government.

The discount is expected to make up 30 per cent of the total gas price, but no more than USD 100 per 1,000 cubic meters, and will apply to 30 billion cubic meters in 2010 and 40 billion cubic meters in subsequent years.

The price formula and ‘take-or-pay’ clause remain unchanged.

The addenda also cancel the contract provisions covering the mutual penalty sanctions, which in practice haven’t been applied.

According to Alexey Miller, “the changes have been introduced in the contract in pursuance of the intergovernmental agreements and don’t have a negative effect on Gazprom’s economics”.

The accord was also reached that 80 per cent of the gas transit cost would be paid by Gazprom before the 6th day of the following month and 20 per cent – as per the existing gas transit contract – before the 20th day of the following month.