October 07, 2008

Ukraine prohibits Naftogaz from transporting gas through RosUkrEnergo

Interfax cited Mr Valentin Zemlyansky a spokesman for RosUkrEnergo as saying that the Ukrainian Cabinet of Ministers has prohibited Naftogaz Ukrainy from using the Swiss registered RosUkrEnergo services to transport gas through Ukraine.

The decree states that the Central Asian gas received by Ukraine's gas transport system from RosUkrEnergo after January 1st 2008 is used solely for satisfying the needs of Ukrainian consumers in volumes determined by the forecast balance reflecting gas receipt and distribution in Ukraine in 2008. At the same time, the text of the document is identical to Decree No 163 dated March 5th 2008 which was made public two weeks ago.

Mr Konstantin Chuichenko executive director of RosUkrEnergo said RosUkrEnergo exported to Europe 8.67 billion cubic meters of gas in 2005 and 8.95 billion cubic meters of gas in 2006. He said in January 2007 that in 2006 the company has supplied 3.5 billion cubic meters of gas to Slovakia, 2.5 billion cubic meters of gas to Poland, 1.9 billion cubic meters of gas to Hungary and 0.8 billion cubic meters of gas to Romania.

Mr Chuichenko also said RosUkrEnergo plans to increase its gas export to Europe in 2007 to 10.5 billion cubic meters.

In 2007, Naftogaz Ukrainy provided to RosUkrEnergo gas transit services 11.6 billion cubic meters, of which 5.6 billion cubic meters was taken from underground storage facilities in Ukraine.