Seven years ago, on January 1, 2009, the Russian state-owned gas monopoly Gazprom decreased the volume of gas shipped to Ukraine (90 million cubic meters per day as contracted in 2008). On January 2, gas shipments to European customers via Ukraine (up to 300 million cubic meters of gas per day), including Hungary, Bulgaria and Poland, reported drops in pressure and slight disruptions in supply as a result of the gas shut off by Russia. Romania reported gas decreases of 30 to 40 percent.
Gazprom claimed in November 2008 that Ukraine was in violation of its gas agreements, citing late payment penalties totaling $614 million and an outstanding balance of $2.1 billion. A contract for 2009 was not signed as a result of the dispute, and deliveries by Gazprom to Ukraine were halted. Naftohaz Ukrayiny claimed that the money that was paid in full was owed to RosUkrEnergo, a Swiss-based shady intermediary that was co-owned by Gazprom and Ukrainian businessman Dimitry Firtash prior to its dissolution (RosUkrEnergo had been part of the pricing scheme since 2002 and prior had been known as Eural Trans Gas). Prime Minister Yulia Tymoshenko, who called RosUkrEnergo a “criminal scheme,” vowed to force it out of the Ukrainian market, and she did.
Gazprom proposed that Ukraine pay $450 per thousand cubic meters in 2009, then offered $250 per thousand cubic meters. Ukraine rejected both offers, making a counteroffer of $208. Gazprom CEO Alexei Miller said that because Ukraine had rejected the offer at $250, Ukraine would have to pay $418.
Russia also rejected offers from Ukraine for a lower upfront price, but Ukraine would be allowed to increase transit fees from $1.70 per thousand cubic meters to $1.80. President Viktor Yushchenko and Prime Minister Tymoshenko in a public statement upped the proposed transit fee to “not less than $2.”
The 2009 gas row between Ukraine and Russia was the second since 2006 (for similar reasons) and shook confidence in Russia as a reliable energy supplier to Europe. The dispute was also seen as a Kremlin attempt at destabilization, manipulation of the Yushchenko-Tynoshenko government tensions, as well as painting Kyiv as an unreliable customer and accusing it of stealing Russian gas.
Since 2015 Ukraine has not purchased any gas from Russia, opting instead to buy gas from Europe and avoiding Kremlin attempts to weaponize Russia’s role as an energy supplier.
Source: “Gazprom stops gas deliveries to Ukraine – What next?” by Roman Kupchinsky (Eurasia Daily Monitor), The Ukrainian Weekly, January 11, 2009.