21.07.03

Naftohaz Ukrayiny yet to transfer Eurobonds to Russia's Gazprom

Ukraine's national Naftohaz Ukrayiny company has not transferred $1.4 billion in Eurobonds to Gazprom in payment of its gas debt due to procedural problems, Ukrainian Minister for Fuel and Energy Serhei Yermilov told a news conference in Kyiv on Tuesday.

He noted, however, that this issue "has not been forgotten" and said the problem will be solved and the Eurobonds will be passed over to Gazprom. In April 2003, Naftohaz Ukrayiny chief Yuryi Boiko said the Eurobonds were likely to be transferred before July 1.

Ukraine and Russia earlier signed an agreement on additional measures to guarantee the transit of Russian natural gas through Ukraine. The agreement was signed by their prime ministers in Kyiv on October 4, 2001, and ratified by the Ukrainian parliament on November 15. Naftohaz Ukrayiny issued Eurobonds under this agreement.

(Interfax)

Ukraine approves draft oil transit agreement with Russia

The Ukrainian government has approved a draft 15-year agreement with the Russian government on the transit of oil through Ukrainian territory, making it possible for Russian companies to annually transit up to 79.5 million tonnes of oil.

Ukrainian Energy Minister Serhiy Yermilov told journalists after the government meeting that the Cabinet of Ministers passed a resolution empowering him to sign this agreement on behalf of the Ukrainian government.

The minister noted that at the moment less than 50% of the capacity of the Ukrainian oil transport system is being used.

He said that the draft agreement involves all operational Ukrainian pipelines, except the Odessa-Brody pipeline, which has not yet been launched. At the same time Yermilov noted that this pipeline could be included in the agreement at any moment. The minister said that the date for signing the agreement now depends on the Russian side, as Ukraine has completed its part of the work.

The Ukrainian government's press service said that the draft agreement sets down the plans of the sides to participate in joint projects involving the transportation of oil along new, promising routes. The sides are obliged to annually agree volumes and conditions for transiting oil through Ukrainian territory.

The agreements reached will be drawn up as annual protocols to the main agreement between the Ukrainian and Russian energy ministries.

The draft document ensures free and uninterrupted transit of oil by the trunk pipeline system in both countries, and the safe and uninterrupted operation of pipeline infrastructure for the transit of oil.

The agreement states that transit tariffs should be established based on non-discriminatory principles for all users of the Ukrainian oil transportation system. In addition, the Ukrainian side will inform the Russian side on time of any changes in oil transit tariffs.

The companies Ukrtransnafta and Transneft have been authorized to carry out the deal.

(Interfax)