The company welcomes European Union officials’ readiness to commence gas flows monitoring
Naftogaz of Ukraine strongly supports the suggestion of European Commission Vice President Ševčovič directed to the governments of Ukraine and Russia in late December 2014 to form a tri-lateral monitoring mission to check gas flows at each of the 18 gas metering stations that measure gas crossing Ukraine’s borders.

“Having the international monitors in place is the best way to ensure that all the parties concerned receive reliable information and we have no emergency situations this winter,” said Andriy Kobolyev, Naftogaz CEO. 

The company has fully complied with Brussels agreements with Gazprom and continues to ensure reliable gas transmission via Ukraine. Naftogaz welcomes this proposal for gas monitoring and is ready to work closely with the parties involved - the European Commission, Gazprom and neighbours to implement this monitoring as quickly as possible.

Following the signing of the tri-lateral Binding Protocol for gas supplies to Ukraine on 30 October between the European Commission, Ukraine and Russia, the Ukrainian Government requested the reinstatement of gas monitoring that had previously been established in January 2009, and the European Commission recently expressed its intention to do so. As a first step, European Union officials visited Ukraine last month and were invited to monitor gas metering stations. 

This initiative follows a year of significant reforms of the Ukrainian gas industry, initiated by both Ukraine and Naftogaz, and centered on measures to increase transparency and improve efficiency. Naftogaz is determined to be a reliable partner for the European Union and is well positioned to act as a transit and storage hub, to the benefit of the region’s energy security. 

Andriy Kobolyev, Naftogaz CEO comments: “We realise that following a decade of near-constant discord between Ukraine and Russia over gas there is an issue of trust in the EU towards us and our system. That is why improving transparency was among the first items on my agenda when I took over in Naftogaz in spring 2014. 

“To this end, in May 2014, we started publishing balances of our underground storages on the GIE transparency platform. This autumn, we have started providing information on gas inflows and outflows in our system on the ENTSOG website. We have made numerous requests the EU to send its envoys to gas metering stations to monitor the inflows and outflows of gas in Ukraine, so we are delighted that the EU has offered its endorsement. I hope this and our other actions will help to rebuild trust and demonstrate our commitment to EU energy security.”

Essential to the rebuilding of this trust is the punctual debt repayments and prepayments for ongoing gas volumes. Both Russia and the EU can attest that this has happened for the Russian gas imported in November to December 2013 and April to June 2014. As such, Naftogaz has met all the obligations of the tri-lateral Binding Protocol for gas supplies to Ukraine on 30 October between the European Commission, Ukraine and Russia.

Background information on Naftogaz: Naftogaz is the national oil and gas company of Ukraine, which was established in 1998. Headquartered in Kyiv, the company covers a full range of activities in the oil and gas business including: production and refinery; transportation and storage; wholesale trade and distribution as well as technical support. More information can be found at naftogaz-europe.com.