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Ukraine’s gas transporting system may stop its work on June 24

The company initiated the talks with the creditors, including Naftogaz Ukraine, which is a parent company, about debt restructuring
19:30, 14 June 2019

gas supplies
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The work of the gas transporting system of Ukraine may be under threat after June 24 due to the lack of funds as Ukrtransgaz reported.

“Ukrtransgaz cannot pay in time on the contracts on the purchase of the gas for its own production and technology expenses due to the lack of the funds and it threatens the work of Ukraine gas transporting system after June 24, 2019,” the message said.

It is reported that the company initiated the talks with the creditors, including Naftogaz Ukraine, which is a parent company, about debt restructuring. The National Security and Defense Council was also informed about the situation.

Related: Gas price in June to be reduced by 7,3%, - Naftogaz

Ukrtransgaz reported that it appealed to the Emergency Service with a letter about possible emergency and it holds negotiations with the National and Utilities, the National Regulatory Commission to solve the situation.

Ukrtransgaz reports that the debt for March-April before the suppliers of the fuel gas is $154,920 million so some of them refuse to supply volumes of gas defined by the contracts. The remained volumes of the gas purchased on the preliminary agreements, are enough to provide the work of the gas transporting system only until June 24.

The company noted that the financial situation is worsened by the tariffs for the operator of the system approved by National Regulatory Commission at the end of 2018. Moreover, the unauthorized gas removal from the gas transporting system is a reason for the financial difficulties as it resulted in the increasing of the debt for the services of the balancing of the member of the market from 2016 up to February 2019 by $1,32 billion, including 91% are the debts of the regional gas companies.

Related: Moscow says ready for gas talks with Kyiv

As it was reported earlier, German Chancellor Angela Merkel stated that the European Commission would not be able to block the construction of Nord Stream 2 gas pipeline.

 

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