Gazprom hits back at Ukraine's plans to scrap Naftogaz

Gazprom hits back at Ukraine's plans to scrap Naftogaz

Russian gas giant Gazprom chairman Alexei Miller said on Friday all existing gas agreements between Russia and Ukraine would need to be revised following the liquidation of Ukraine's Naftogaz, in a rebuff to a threat by Ukraine to scrap its main energy company and tear up its gas deals, RIA Novosti reported.

"Of course after Gazprom merges with Naftogaz, [the latter] will cease to exist, there will be a liquidation period and then some time later, after all the necessary formalities become valid, a completely new company will be operating on the market. This is why all existing agreements will be revised," Miller said in an almost exact duplicate of an announcement by Ukrainian Prime Minister Mykola Azarov earlier on Friday.

Gazprom has long coveted Ukraine's gas transit system, and Russia has offered a merger of the two companies, but Ukraine has insisted such a deal would infringe its sovereignty.

Azarov said that Kiev, which is in a bitter row with Moscow over prices for gas, plans to liquidate its state-run energy firm Naftogaz, an acquisition target of Russia's Gazprom, and to revise all current agreements.

"Naftogaz as a company will cease to exist. There will be a liquidation period. Some time later, after all necessary formalities become valid, totally new companies will operate on the market. This is why all existing agreements will be revised," Azarov told reporters.

Ukraine has been trying to revise a 2009 agreement with Russian gas giant Gazprom which tied the gas price to the price for oil boosting Kiev's bill. Former Prime Minister Yulia Tymoshenko is now on trial for exceeding hesigning it.

Ukraine said on Tuesday that it would slash Russian gas purchases by a third to 27 billion cubic meters in 2012, from 40 bcm this year. However, Gazprom said that under the contract, based on a 'take-or-pay' principle, Kiev would have to pay for 33 bcm of gas regardless of actual purchases.

Azarov said that the 2009 deal violated a 2004 agreement, which says the two countries should revise the volumes of gas.

"Unfortunately, the agreement of 2004, which has an inter-state validity and is above national law, was never fulfilled. Therefore, we believe that the contracts which were signed in 2009 contradict (it), at least in the part concerning annual gas supplies," Azarov said.

Last week Russian President Dmitry Medvedev said Ukraine might get discounts for gas if joined the Customs Union of Russia, Belarus and Kazakhstan and agreed the acquisition Naftogaz by Gazprom. But Azarov said Ukraine wanted no discount, but a fair contract.

"We have all reasons to propose to the Russian government in accordance with the intergovernmental agreement (of 2004) holding talks on gas supplies and transit terms. We have sent a letter on the matter," Azarov said.

Turkey performs highest number of COVID-19 tests since March
Turkey performs highest number of COVID-19 tests since March
Trade turnover between Turkey, Georgia up in 1H2020
Trade turnover between Turkey, Georgia up in 1H2020
Kazakhstan's steel import from Turkey slumps amid coronavirus pandemic
Kazakhstan's steel import from Turkey slumps amid coronavirus pandemic
Loading Bars
Civil Aviation Agency releases information about Tbilisi-Doha charter flight
Number of COVID-19 cases across globe up by over 214,000 in past day
Turkey performs highest number of COVID-19 tests since March
Iranian, French presidents discuss Lebanon's situation on phone
Construction of trade and logistics centre initiated in most remote region of Kyrgyzstan
Ecuador registers 862 more COVID-19 cases, 19 new deaths
4 police killed in bomb attack in W. Afghanistan: official
Purchase of wheat continues in Iran's Hamadan Province
Greece registers 262 new coronavirus cases, highest daily tally
Trade turnover between Turkey, Georgia up in 1H2020
Iran discloses volume of red meat production
Georgia sees increase in fish production
Azerbaijani microentrepreneurs receiving second lump sum payment
Kazakhstan's steel import from Turkey slumps amid coronavirus pandemic
Turkey unveils seven-month figures on cargo shipment via its ports
National Bank of Georgia talks negative impact of COVID-19 on country's economy
Reconstruction works of Georgian Gardabani TPP to be completed in September
Azerbaijan, Russia developing new project in agricultural machine-building
Georgian Kula canning company starts supplying products under new brand
Opening of Afghanistan bank's branch in Iran's Chabahar requires better preparation
Galt & Taggart: Price drop observed in Georgian real estate market
Talks held between Foreign Affairs Minister of Turkmenistan, acting Chairman of Central Bank of Afghanistan
Turkey reveals seven-month number of trailers, containers shipped through its ports
Georgia to harvest huge high-quality nut crop in 2020
Uzbekistan allocates significant funds for modernization of agriculture
Kazakhstan’s foreign exchange reserves increase as gold prices go up
Uzbekistan plans to create automated irrigation areas in Jizzakh, Syrdarya regions
Nearly 80 foreign citizens to return from Georgia to their countries of residence
Turkey unveils volume of exports of electrical goods during seven months
Largest share of re-export of cars from Georgia falls on Azerbaijan
TOP-15 Azerbaijani banks disclose their 1H2020 assets
Electricity production increases in Kazakhstan year-on-year
Purchase of wheat resume in eleven counties of Iran's Lorestan Province
Iran to sign new contracts in oil sector
Steel export from Turkey to int'l markets drops
Uzbekistan gradually abandons lockdown
Azerbaijan's Gunay Sigorta insurance company to raise its authorized capital
New irrigation lines to be commissioned in Iran
Turkmenistan sends another batch of humanitarian aid to Afghanistan
Volume of wheat purchased from farmers in Iran's Ardabil Province disclosed
Iranian Energy Exchange announces products for sale on August 15
Turkmenistan increases export of clothing to EAEU countries
German government to help implement smart traffic light system in Georgia
Uzbekistan records increase in number of natural monopolies
Microsoft prices its dual-screen Android phone at $1,399, will arrive Sept 10
Azerbaijani scientist talks underground water channels under Armenian occupation
Kazakhstan’s June crude oil production down month-on-month
Kazakhstan's Aktau port to buy power spares via tender
PETRONAS Carigali Sdn Bhd in Turkmenistan opens tender for provision of ropeway equipment
Kazakhstan increases trade with Hungary despite COVID-19
Georgia reveals volume of state property sales in 1H2020
Ukrainian companies seek to expand their presence in Turkmen market
OPEC reveals forecasts for Azerbaijan’s oil output
Azerbaijan confirms 202 more COVID-19 recoveries
UAE ambassador: Intensive discussions underway for Masdar’s solar project in Azerbaijan
Norway to quarantine more travellers as COVID-19 rises
Bahar Azadi gold coin price falls in Iran
Nearly 283,000 PCR tests conducted in Georgia since COVID-19 outbreak
Equinor processing seismic data of Ashrafi-Dan Ulduzu-Aypara
Apple supplier Foxconn's profit beats view, sees smartphone demand off lows
Azerbaijani minister: Specific, serious tasks set to ensure efficient use of water resources (PHOTO)
S&P Global Ratings updates ratings of Uzbek Xalq Bank
Kazakhstan to gradually resume flights on more int'l routes
Iran issues regulations for online business
France to ramp up police checks to ensure masks are worn
Half-year rail freight operations from Russia to Iran through Azerbaijan announced
Equinor reveals details about JV with SOCAR
Iran reveals volume of foreign investment
President Ilham Aliyev viewed new TX London taxis delivered to Baku (PHOTO)
Georgia hosting over 750 foreign tourists
EBRD to support renovation of 10 metro stations in Georgian capital
Malaysian company to establish caustic soda production in Uzbekistan
Russia's Tatarstan Investment Dev't Agency talks tasks of Turkmen trading house in Kazan
Iran reveals volume of tea leaves purchased from farmers
Zarif: Iran not accept any plan to change its nuclear program
Hikmat Hajiyev: Armenia's National Security Strategy - like fake history textbook
SOCAR Turkey reveals gas sale plans of Bursagas, Kayserigas
Emergency services attend derailed train in Scotland
Kazakhstan's Tengiz expansion project progress revealed as of 1H2020
Crude production down at Kazakhstan's Tengiz field year-on-year
Azerbaijan's FM: We support political settlement of Karabakh conflict through negotiations
Cooperation between Azerbaijan, Turkey serves development of region - foreign minister
Iran discloses Qom Province's export details
Iran reports over 2,500 new coronavirus cases
Turkmenistan, Russia’s Tatarstan boost trade turnover
Turkish high-ranked military officials arriving in Azerbaijan to observe joint tactical exercises
UK says trade talks with U.S. continue to make positive progress
Azerbaijan's AzEduNet provides unlimited internet, technical support services to schools
Iran launches production of aircraft engine parts
Steam units of TPPs to be built in Iran
Turkmenistan reveals amount of products manufactured at its expanded clay plant
COVID-related crises to exacerbate challenges Kazakhstan already faces in energy sector
Uzbek bank establishes cooperation with Japanese JCB International
Iran announces employment data in industrial parks
Prices on Azerbaijani oil fluctuate
Turkmenistan switching to environmentally friendly technologies in industrial sector
SOCAR Turkey’s IPO postponed
Central Bank of Azerbaijan launches instant payment system in test mode
Smartphone shipments in China plunge 35% in July
Uzbekistan expands banking service infrastructure
All news