6 Dec 2019 09:29

Transneft to pay Ukrtransnafta 1.5 bln euros over 10 years for oil transit

MOSCOW. Dec 6 (Interfax) - Transneft will pay JSC Ukrtransnafta 106.7 billion rubles for oil transport services through Ukraine for ten years, at the Central Bank of Russia's euro/ruble rate on the date of the deal, the Russian oil pipeline monopoly said in a statement.

Based on the euro's exchange rate against the ruble on the date of the event, December 5, the contract will be worth 1.5 billion euros.

The contract will be in effect from January 1, 2020 to January 1, 2030, after which it will be extended for one calendar year until one of the parties preliminarily informs the other otherwise. Payment for complete fulfilment of obligations will be made through mutual settlements, Transneft said.

Transneft signed an additional agreement to its contract for oil transport services through Ukraine on December 3. In addition to extending the contract, the signed long-term agreement updates a number of the provisions of the current contract taking into account changes on the oil transport services market.

However, the basic principles of cooperation between Ukrtransnafta and Transneft - the procedure for payment of services and mechanism for relations at the level of the oil transport operators' technical services - remain unchanged, the Ukrainian company said earlier.