Russia–Ukraine gas disputes
Parts of this article (those related to the 31 Oct 2014 settlement) need to be updated.(October 2014)
The Russia–Ukraine gas disputes refer to a number of disputes between Ukrainian oil and gas company
A serious dispute began in March 2005 over the price of natural gas supplied and the cost of transit. During this conflict, Russia claimed Ukraine was not paying for gas, but diverting that which was intended to be exported to the EU from the pipelines. Ukrainian officials at first denied the accusation, but later Naftogaz admitted that natural gas intended for other European countries was retained and used for domestic needs. The dispute reached a high point on 1 January 2006, when Russia cut off all gas supplies passing through Ukrainian territory. On 4 January 2006, a preliminary agreement between Russia and Ukraine was achieved, and the supply was restored. The situation calmed until October 2007 when new disputes began over Ukrainian gas debts. This led to reduction of gas supplies in March 2008. During the last months of 2008, relations once again became tense when Ukraine and Russia could not agree on the debts owed by Ukraine.
In January 2009, this disagreement resulted in supply disruptions in many European nations, with eighteen European countries reporting major drops in or complete cut-offs of their gas supplies transported through Ukraine from Russia. In September 2009 officials from both countries stated they felt the situation was under control and that there would be no more conflicts over the topic, at least until the
On 8 June 2010, a Stockholm court of arbitration ruled
Russia plans to completely abandon gas supplies to Europe through Ukraine after 2018. Gazprom has already substantially reduced the volumes of gas it transits across Ukraine, and expressed its intention of reducing the level further by means of transit diversification pipelines (Nord Stream, Turkish Stream, etc).
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Ukraine's own annual gas consumption in 2004–2005 was around 80 billion cubic metres (2.8 trillion cubic feet), of which around 20 billion cubic metres (710 billion cubic feet) were produced domestically, 36 billion cubic metres (1.3 trillion cubic feet) were bought from
Gas trading was conducted under a framework of bilateral intergovernmental agreements which provided for sales, transit volumes, gas prices, gas storage, and other issues such as the establishment of production joint ventures. Commercial agreements were negotiated between the relevant companies within the guidelines and dictates of that framework and supplemented by annual agreements specifying exact prices and volumes for the following year. Gas sales prices and transit tariffs were determined in relationship to each other. Commercial agreements and trade relations have been non-transparent and trade has been conducted via intermediaries such as
According to a contract between Gazprom and Naftogaz signed on 21 June 2002, payment for the transfer of Russian natural gas through the
According to the agreement of 2006, RosUkrEnergo was to receive no more than 20 percent of the total delivered gas, which in 2007 was 15 billion cubic metres (530 billion cubic feet) of 73 billion cubic metres (2.6 trillion cubic feet).[