Russia breaks Brussels deal by failing to supply prepaid gas in full – Naftogaz

NJSC Naftogaz Ukrainy asks Russia's OAO Gazprom to explain the failure to fulfill a request to deliver prepaid natural gas on February 22, Naftogaz said in a statement on Monday evening.

"Naftogaz has requested an explanation from Gazprom regarding the Russian company's failure to supply prepaid gas volumes to Ukraine on February 22, 2015. Naftogaz ordered 114 million cubic meters in line with the 'Winter Package' supply conditions, but Gazprom delivered only 47 million cubic meters," the statement reads.

Naftogaz says it considers this failure to deliver prepaid gas a violation of the Binding Protocol signed by Russian Energy Minister Alexander Novak, European Commission Vice President Guenter Oettinger and Ukrainian Energy Minister Yuriy Prodan on October 30, 2014 in Brussels.

On February 19, Naftogaz ordered 114 million cubic meters of gas through the Sudzha, Pysarivka, Sokhranivka, Valuyki, Kobrin and Mozyr metering stations.

"According to paragraph 3.3, supplement 33 dated October 30, 2014, to the January 19, 2009, contract for the supply of natural gas, the buyer is entitled to make a daily order ranging from zero to 114 million cubic meters of natural gas. The seller, in turn, is obliged to fulfill such a request in full if the application was filed two days in advance. The legally permitted deviation from the requested daily delivery order volume is not more than 6%," Naftogaz said.

As of February 19, Naftogaz's remaining prepaid balance with Gazprom stood at 454 million cubic meters. As of February 23, Naftogaz's remaining prepaid balance with Gazprom stands at 287 million cubic meters.

"Notice of this breach of contract and of the Brussels Binding Protocol was sent today to the Cabinet of Ministers of Ukraine, the European Commission and the Energy Community Secretariat," Naftogaz said.