Ukraine asks Gazprom to return natural gas seized after Crimea annexation

Kiev (Platts)--15May2014/949 am EDT/1349 GMT

Ukraine has asked Russia's Gazprom to return 2 Bcm of gas that was in underground storage facilities in Crimea before the region was annexed by Russia, deputy energy and coal industry minister Ihor Didenko said Thursday.

The gas was owned by state-owned energy company Naftogaz Ukrayiny via its subsidiary Chornomornaftogaz. Ukraine, the EU and US have said the annexation of Crimea was illegal.

"There is 2 Bcm of gas on the Crimean peninsula, the Ukrainian territory, and that is the property of Naftogaz and kept at the storage facilities of Chornomornaftogaz," Didenko said. "We suggested [to Gazprom] that 2 Bcm be sent to Naftogaz storage facilities."

Gazprom and Naftogaz are in talks over $3.5 billion in debts and gas prices, amid concerns the dispute may escalate and lead to gas being cut off.

Gazprom said recently it will stop supplying gas on June 3 unless Ukraine makes an advanced payment for supplies made up to June 2. Gazprom also sent a $1.66 billion invoice to Naftogaz to cover supplies of gas in June.

Naftogaz disagrees with the debt figure because it has been calculated after Gazprom raised the price of gas it supplies to Ukraine more than 80%.

Ukraine said the price hike to $485 per 1,000 cubic meters was politically motivated and cannot be accepted.

The EU and US have included Chornomornaftogaz on their list of entities facing sanctions, effectively barring the company from international activity.

Ukraine plans to file a lawsuit to an international court of arbitration in Stockholm against Russia for its seizure of Chornomornaftogaz.

--Alexander Bor, newsdesk@platts.com
--Edited by Dan Lalor, daniel.lalor@platts.com

 

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