NJSC Naftogaz of Ukraine offers Russian Gazprom a swap contract (“swap” is a derivative contract through which two parties exchange the cash flows or liabilities from two different financial instruments. – ed.) instead of transit as a backup option in case of stopping gas transportation via Ukraine from 2020.
This was announced by the Naftogaz of Ukraine Executive Director, Yuriy Vitrenko.
“NJSC Naftogaz Ukrainy in case of problems with unwillingness of Gazprom to undertake the risks, associated with the Ukrainian regulator and the operator of the gas transportation system [according to European rules, the operator and the national regulator have the appropriate authority to set or change tariffs and other essential terms of the contract], will offer the Russian company a fallback option – gas swap,” Yuriy Vitrenko said.
At the same time, Vitrenko added that this is a plan B proposed by the company in case the agreement with Gazprom on the signing of a transit agreement will not be reached.
“Gazprom will transfer us a certain amount of gas [a certain energy value of gas] on the Ukraine-Russia border, and we will transfer exactly the same amount [energy value] on the Ukraine-EU border,” explained the Executive Director.
According to Vitrenko, the transfer of gas will be confirmed by adjacent operators (Slovakia, Hungary, Poland, Romania), that is, they will take responsibility to Gazprom for gas which already in their systems.
It is noted that such contracts for gas swap are relatively common for the European market, and such a contract can be signed according to the European rules, which are different for gas transportation contracts.
As The Journalist reported, Ukraine warns EU of gas crisis amid termination of Russian gas transit.
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