Gas supplies by Gazprom to Ukraine from EU would be 'somewhat suicidal' – Naftogaz official

The supply of gas by Gazprom to Ukraine from the European Union (EU) would have had serious negative consequences for the Russian monopolist, Business Development Director at Naftogaz Yuriy Vitrenko has said.

"From the point of view of Naftogaz, Gazprom would not take part in this tender [on the supply of gas from the EU to Ukraine]. Due to the fact that it would have to sign a new contract, it would not be able to act under the current contract, and it would be somewhat suicidal for Gazprom to sign the new contract along with the current one, especially under the take-or-pay condition," he said.

Vitrenko said that gas supplies from the EU using funds of the European Bank for Reconstruction and Development (EBRD) are only possible under the conditions of the standardized EFET contract (the European Federation of Energy Traders).

Conflict over the current contract between Naftogaz Ukrainy and Gazprom could appear if the new contract is signed.

"The question how, even in theory, it is possible to demand the observation of the take-or-pay condition if they sell additional volumes to the same company under another contract," Vitrenko said.

Ukraine's Minister of Energy and Coal Industry Volodymyr Demchyshyn previously said that Gazprom could take part in a tender to supply natural gas to Ukraine from Europe.