December 30, 2019, 19:31 / Business

The Ukrainian government allowed Naftogaz to sign an agreement with Gazprom

The Government of Ukraine gave its consent to Naftogaz of Ukraine to sign an agreement with the Russian Gazprom on the settlement of gas disputes, as well as an agreement on organizing gas transit for five years, follows from a document published on the Cabinet of Ministers website. It is assumed that the agreement will be valid until 2024 inclusive.

The current eleven-year contract between Russia and Ukraine expires on January 1, 2020. The parties could not agree on the parameters of the new agreement for many months, but reached a preliminary agreement on December 20. To sign a gas transit agreement, a number of conditions must be met on both sides.

Gazprom was obliged to pay Naftogaz $2.9 billion, awarded by the decision of the Stockholm arbitration. The company has already reported that it has complied with the court decision. At the same time, Naftogaz had to abandon other claims against Gazprom in the amount of more than $12 billion. The Antimonopoly Committee of Ukraine should cancel claims against the Russian company for $7.4 billion. Deputy Minister of Justice of Ukraine Ivan Leshchina said on Facebook on December 30 that the corresponding an agreement on the antimonopoly dispute was signed, but did not specify the details.