Anti-Monopoly Committee of Ukraine fines Gazprom $86 billion, gives two months for settlement

As reported by Censor.NET citing UNIAN, as a result of breach of the contract, Naftohaz sustained significant losses due to reduction in the amount of fuel pumped to the EU.

The AMCU says that under the contract terms, Gazprom undertook to annually transport 110 billion cubic meters of gas through Ukraine's territory.

Naftohaz, in turn, formed the tariff and projected revenues for the the transit of Russian natural gas, based on the amount of natural gas intended to be transported through the Ukrainian gas transport system during a lengthy period, since it was a long-term contract.

"Gazprom neglected all repeated appeals by Naftohaz, which sought to agree on a new reasonable price for transit due to decrease in the amount of natural gas transported through the territory of Ukraine," the AMCU stated.

"Gazprom's failure to take steps to review prices and conditions of natural gas transit... led to significant economic losses by Naftohaz," the authority resumed.

The AMCU says a possible solution could be negotiations between Naftohaz and Gazprom aimed at setting reasonable tariffs for natural gas transit through the territory of Ukraine, including with regard to the provisions of the Treaty establishing the Energy Community.

"On Feb. 12, 2016, the AMCU sent its decision to the parties in the case: Gazprom as a defendant, Naftohaz as a third party," the committee added.

The AMCU reminded Gazprom it had two months to carry out the decision.