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Ukraine says it lost $32 billion from gas contracts with Russia

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Staff Writer | January 19, 2019
Ukraine's state-run energy company Naftogaz estimates its economic damage from the 2009 gas contracts with Russia at 32 billion U.S. dollars, the company's chairman Andriy Kobolev said.
Andriy Kobolev
Europe   Naftogaz chairman Andriy Kobolev
"We have irretrievably lost 32 billion dollars. This includes overpayments, fines, and other components," Kobolev told a press conference in Kiev.

In 2009, Ukraine and Russia signed agreements on the supplies of Russian gas to Ukraine and on its transit to Europe via the Ukrainian territory. Both deals expire this year.

In particular, the gas supplies contract included the "take-or-pay" clause, which obliged Ukraine to pay for the agreed amount of gas whether it uses it or not, while the transit contract obliged Russia to supply the contracted volume of gas for transit via Ukraine.

Since 2014, Ukraine and Russia have been embroiled in two separate legal disputes regarding the transit of gas and gas purchases.