Page 50 - UKRRptMar20

an unseasonably warm winter and the fact that both Gazprom and Ukraine’s national gas company Naftogaz built up significant reserves of stored gas in anticipation of a fresh gas war.
Due to mild weather and over supply in Europe, Naftogaz will charge 37% less for gas this month than one year ago, the state oil and gas company says.
The Rada is expected to pass this spring a bill to combat ‘sleeping’ oil and gas licenses​, says Prime Minister of Ukraine Honcharuk. “If an investor is ready to invest honestly, to receive licenses on a competitive basis, to pay taxes, to create jobs, we welcome him to work,” Honcharuk said in February on a visit to Poltava Region, currently the source of 40% of gas produced in Ukraine. “If there is a desire to take some licensed sites somewhere for a bribe. and then to sit on them for decades, to do nothing – that will not work.” Retarding gas production, there are hundreds of such cases across Ukraine.
Ukraine’s national gas company​ ​Naftogaz​ received $578.4mn from Russia’s​ ​Gazprom​ to ensure natural gas transit ​during three months in January 2020, Executive Officer of Naftogaz Yuriy Vitrenko said at the start of February. "In January, Naftogaz received $239.5mn for transit in December, as well as $175.1mn as advance payment for January and $163.8mn for February. Only $578.4mn," he wrote on his Facebook page. He said that this amount makes up almost a third of the national budget receipts in January 2020. "If we had not actually exchanged claims in the new arbitration for a new transit contract, then in January Naftogaz would have received only $239.5mn, and this would be the last payment for transit," Vitrenko added.
Ukraine’s gas company​ ​Naftogaz​ seeks a new $8bn in compensation from Gazprom. ​Naftogaz and six of its subsidiaries submitted their Reply Memorial on Quantum in the Permanent Court of Arbitration proceedings against the Russian Federation, responding to Russia’s Counter-Memorial on Quantum. In its Reply Memorial, Naftogaz further substantiates its claim for compensation for its assets that the Russian Federation unlawfully expropriated in Crimea in March 2014 – damages valued at approximately $8bn, including interest. Earlier, the Tribunal found that the Russian Federation had breached a number of BIT provisions by the expropriation of Naftogaz group’s assets in Crimea. Despite Russia’s appearance in the arbitration in January 2017, it refused to actively participate in the proceedings for nearly three years. Thereafter, Russia submitted its Counter-Memorial in December 2019, but did not put forward any alternative measure of damages.
Private gas company production is to increase by 28% this year, ​while state production is to decline by 2%, Andrei favourov, head of Naftogaz’s integrated gas business, predicted to reporters February 17. UkrGazvydobuvannya, the Naftogaz production unit, will produce 14.6bn cubic meters, far short of the “20bcm in 2020” goal set two years ago by the Poroshenko government. Private companies are to increase production to 5.9bcm. Andriy favourov, head of Naftogaz’s integrated gas business, said the company will pursue a three prong strategy this year: “The first is production from deep deposits, especially under Shebelinka. The second is gas from shale rocks. The third is Black Sea shelf. The result is a trident.”
50​ UKRAINE Country Report​ March 2020 ​ ​www.intellinews.com