Page 56 - UKRRptNov18

9.0 Industry & Sectors 9.1 Sector news
9.1.1 Oil & gas sector news
Gas imported by Ukraine in the 12 months of 2017 was estimated worth $3.23bn .
Russia's state-owned natural gas monopoly Gazprom is challenging a $6bn fine levied by the Antimonopoly Committee of Ukraine in international arbitration courts as the legal battle between the two continues, the Russian company said in a statement on October 25. "Gazprom, in accordance with UNCITRAL arbitration rules, has initiated an arbitration settlement against Ukraine with the goal of safeguarding its interest on its territory in connection with Ukraine, in the form of the Antimonopoly Committee, has groundlessly and unjustly levied a fine against Gazprom amounting to more than $6bn including penalties for supposedly abusing its monopoly position on the Ukrainian gas transit market," the statement reads. In October 2017, the Kyiv Economic Court authorised to collect from Gazprom fines and penalties for the total amount of UAH172bn that the Antimonopoly Committee imposed earlier on Gazprom. In January 2016, the Antimonopoly Committee fined Gazprom UAH85.966bn for abusing its monopoly on the market of transit of natural gas through Ukraine during the period of 2009-2015. The new legal battle between Gazprom and Russia is unfolding against a background of February's ruling of the Stockholm arbitration, according to which Gazprom must pay Naftogaz a total of $2.6bn , ending a four-year legal battle over gas supply contracts. On October 1, Ukrainian President Petro Poroshenko said that he is confident that all the funds won by Ukraine in courts against Russia will be returned to the Ukrainian state.
Ukraine has enough gas to get through the winter. Ukraine's natural gas reserves stood at 16.185bn cubic metres (cm) as of late September, according to the state-owned gas transport company Ukrtransgaz. After the completion of the previous heating season, the country's authorities increased natural gas reserves in the underground gas storage facilities by 8.750bn cm. CCO of the state-owned gas monopoly Naftogaz Yuriy Vitrenko said on September 26 that Ukraine has accumulated enough volumes of natural gas in its underground gas storage facilities to steadily pass the autumn and winter period. "Now there are some 16bn cubic metres of gas in underground gas storage facilities. This is enough to pass winter with comfort," Interfax news agency quoted him as saying. Vitrenko said that there is a strong likelihood that after the completion of the heating season the company would have a good gas reserve in its storage facilities. Earlier, the Ukrainian cabinet intended to accumulate 17bn cm of gas reserves in underground gas storages by November 1.
Facing potential cuts in Russian gas deliveries in 2020, Naftogaz plans to invest $1.2bn to boost natural gas production next year , Yuriy Vitrenko, the state energy company’s chief commercial officer, tells reporters. Naftogaz also will invest $260mn to upgrade its massive east-west pipeline system. Gazprom’s gas transmission contract expires at the end of 2019. At the same time, Gazprom plans to start shipping gas to Germany through Nord Stream 2.
56 UKRAINE Country Report November 2018 www.intellinews.com