Naftogaz unable to make backup gas purchases in Europe because of risk of huge losses - Vitrenko

NJSC Naftogaz Ukrainy could not make backup natural gas purchases in Europe because of the risk of huge losses, Yuriy Vitrenko, the company's chief commercial director, has stated.

"Backup gas purchases from Europe is not an option, because if Gazprom sees that we do not need its gas, it won't suspend supplies but sell us unnecessary gas [which Ukraine must purchase under the decision of Stockholm Arbitration]. And we will pay twice: for gas from Europe and for gas from Gazprom. We will incur huge losses that no one will cover," he wrote on his Facebook page.

Vitrenko added that such actions would lead to huge material damage.

"These days gas in Europe cost up to $1,000, i.e. four times more than under the contract with Gazprom. If we bought it, Naftogaz would be immediately accused of diseconomy. We earn money for Ukrainians but do not lose it. This is our understanding of how the national company should operate," he said.

He said that following Gazprom's refusal to supply gas to Ukraine on the terms stipulated in the contract and the decision of the Stockholm Arbitration, Naftogaz has the legal opportunity to demand compensation for losses from Gazprom.