Naftogaz expects to receive all prepaid volumes of Russian gas today. According to the current agreements with Gazprom, further volumes will be contracted and prepaid by Naftogaz as needed, depending on demand in Ukraine and taking into account terms available for Naftogaz in the EU. Before any prepayments are made, Naftogaz will receive Russian gas only for transit to the EU.

Ukraine will continue to transport Russian gas to the European consumers in full accordance with the contract.

“During the past 18 months we have demonstrated that we can ensure stable transmission of Russian gas regardless of whether we get it for Ukraine or not, both in the summer and the winter seasons. At this time a year ago we did not buy any gas from Russia, having less gas in storages and smaller import capacities from the EU. As far as we are aware, both Gazprom and its clients are satisfied with the quality and reliability of our transmission services”, commented Andriy Kobolyev, CEO of Naftogaz.

Naftogaz reminds of the rapid response mechanisms developed within the framework of the trilateral winter package signed by Ukraine, Russia and the European Commission in October 2014. Transmission data is automatically supplied to the European Commission on a daily basis and published online athttps://transparency.entsog.eu/. Naftogaz suggests the Russian side uses these mechanisms to discuss any concerns.

It is expected that negotiations regarding the Russian gas price for Ukraine in 1Q 2016 will take place in December 2015. Other terms of the Russian gas supply to Ukraine were agreed between Naftogaz and Gazprom in October 2015 and are not expected to change until the end of 1Q 2016.