Naftogaz sees no ground yet for terminating transit contract with Gazprom

Naftogaz Ukrainy is interested in continuing to transit Russian natural gas via Ukraine and ready to implement the transit contract it signed with Gazprom in 2009, with changes made to it in light of the decisions by the Stockholm arbitration.

"Our position is that we see no grounds yet for terminating our transit contract [with Gazprom]," Naftogaz' chief commercial director Yuriy Vitrenko told a press conference in Kyiv on Monday.

"Moreover, at least from what we are seeing in Gazprom's explanations and proposals they have made for having the contract reviewed and even terminated, they look unacceptable to us," Vitrenko said.

The existing gas supply and transit contracts of 2009 envisage a certain termination procedure: the supply contract requires a 30-day notice, the transit one, a 45-day notice, and if subsequent talks fail, the parties must turn to the Arbitration Institute of the Stockholm Chamber of Commerce, Vitrenko said.

As for Gazprom informing of the contracts' termination, so far it has only notified of its intention to bring the matter before the arbitration, he said.