Ukraine proposed "Gazprom" discount for gas transit in excess of the contract

President of Ukraine Volodymyr Zelenskyy during a meeting with deputies of the Servant of the People party in the Lviv region - 1920, 10/22/2021

MOSCOW, October 22 – Ukraine has offered Gazprom a 50% discount on gas transit to Europe in excess of the contractual volume of 40 billion cubic meters per day, Volodymyr Zelenskyy said.
“Ukraine offers this additional opportunity to all potential transit countries. We would like to see European companies as clients, but these additional opportunities are also available for Gazprom,” the agency quoted him as saying. Bloomberg.
According to the Ukrainian leader, Kiev guarantees transit and special anti-crisis conditions for volumes that exceed those provided for in the contract.
“Let me be clear: I am sure that if we do not do this right now, Europe’s losses this winter will be enormous. Only quick coordinated measures can stop the crisis,” Zelensky stressed.
The European gas market has been in a fever in recent months. If at the beginning of August, futures were trading at around $ 515 per thousand cubic meters, then by the end of September they more than doubled, and on October 6 they reached a historical maximum of $ 1937. Then some pullback followed, but prices still remain high.
In October, Gazprom reported that in January-September it increased exports to non-CIS countries, according to preliminary data, by 15.3 percent, to 145.8 billion cubic meters. This is the second largest figure for nine months in the entire history of deliveries (in 2018 – 149.2 billion cubic meters).
The company has repeatedly pointed to the inadequacy of gas reserves in European underground storage facilities in the light of the approaching winter, and on September 17, its head Alexei Miller linked price records to this factor. At the same time, Gazprom stresses that it supplies gas to the EU in full compliance with contractual obligations, and also strives to satisfy applications for additional supplies due to its capabilities.

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