Naftogaz Signs Deal with Gazprom Subsidiary

The document covering 10 years will not take effect, however, until the technical agreement is signed between Naftogaz of Ukraine and Gazprom.

Gazprom sbyt Ukraine is Gazprom's wholly-owned subsidiary, established in 2008 to replace UkrGas-Energo, a joint venture of RosUkrEnergo and Naftogaz of Ukraine.

From May 1, 2008 the company was empowered to supply 7.5bn cubic meters of gas directly to Ukrainian consumers and signed a contract to buy gas from Naftogaz of Ukraine.

According to new gas deals reached by Russia and Ukraine on January 19, 2009, Gazprom sbyt Ukraine is likely to cover up to 25 percent of the total demand of Ukraine's industrial consumers, with direct sales reaching 13.5bn cubic meters of gas.

Author: Ksenia Kochneva