BRUSSELS, October 31 (RIA Novosti) — The so-called "take or pay" rule will not apply to the existing contract between Russian energy giant Gazprom and Ukraine's Naftogaz through March 2015, Russian Energy Minister Alexander Novak said following gas talks in Brussels.
"During this period [through March next year] the 'take-or-pay' rule will not be in force," Novak told reporters.
Russia and Ukraine on Thursday held the final round of talks, mediated by the European Commission, to find an interim solution to the standoff over Ukraine’s unpaid gas bills and the price Kiev will pay for Russian gas supplies during the upcoming winter.
Following the talks, Russia, Ukraine and the European Union signed a so-called "winter package" agreement on gas deliveries, while Gazprom and Naftogaz signed an addendum to the contract, securing conditions for gas deliveries up until March 2015.
In particular, Ukraine agreed to pay $1.451 billion in Russian gas debt immediately, prepay for at least 4 billion cubic meters of gas, and to pay a total of $3.1 billion to cover part of its debt to Russian energy giant Gazprom by the end of the year. At the same time, Russia agreed to give Ukraine a $100 per 1,000 cubic meters discount until March 2015 in a form of export duty reduction.
The "take-or-pay" clause is commonly found in gas contracts. It means that the supplier is obliged to deliver the maximum amount of gas outlined in the agreement, while the buyer agrees to pay for the part of these volumes in any case, no matter how much gas was actually bought during the considered period, so gas has to be paid for whether taken or not.
