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Apr. 17, 2008
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Naftogaz Accused of Gas Trafficking
Ukrainian Customs Service has initiated a case against Naftogaz on count of gas trafficking, RBC-Ukraine reported, specifying that the information was confirmed by a few top-ranked officials of Ukraine.
It is the question of about 5 billion cu meters of gas. The problem emerged as a result of uncontrolled gas consumption by Naftogaz in 2008, said Konstantin Borodin, head of Ukrainian Energy Research Center. Without any contracts and customs clearance, the company used gas for the needs of heat-power engineering enterprises.

UkrGaz-Energo was the monopolistic gas importer in 2008, but it had the gas cleared by customs only for its own industrial clients, Borodin reminded.

Gazprom and Naftogaz entered into the gas agreement March 13, 2008, which spelled out another variant of gas supplies procedures to Ukraine. From March through December of this year, Naftogaz is to independently buy the gas of Central Asia on border and at the price of $179.5 per a thousand cu meters. The amount is 49.8 billion cu meters at the minimum.

The intermediaries, UkrGaz-Energo and RosUkrEnergo, are to be crossed out of the supplying chain. But the name of the company that will be selling gas to Ukraine is yet unclear. So, the talks are underway and Swiss trader RosUkrEnergo continues to supply the gas.

The agreement also specifies that Gazprom’s subsidiary or the company affiliated to it may annually supply at least 7.5 billion cu meters of gas to industrial consumers in Ukraine starting from April 1.
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