'Sue RWE', Ukrainian Official Challenges Gazprom

Ukraine has challeged Russia to sue if it continues its allegations that Ukraine is illegally obtaining gas from sources other than its contract with Gazprom, the Russian state gas provider.

Naftogaz, the national gas and oil company, does not break any law in buying natural gas from Europe, a senior official in the gas section of the Ukrainian Energy and Coal Industry Ministry told Kommersant-Ukrainenewspaper, quoted in other Ukrainian media.

He said Gazprom could sue German utility RWE, one of the alternative contractors Ukraine is using, if they disputed the validity of other supplies. "All is being done legally on our side. If Gazprom has any claims, it can sue RWE," the official told the newspaper.

Ukrainian Energy and Coal Industry Minister, Eduard Stavitsky, this week outlined the country’s gas balance for 2013.

In-country production of 23 billion cubic meters (bcm)  out of a total 60 bcm is envisaged, he said. Gas purchases from Gazprom could shrink to 10.5 bcm, compared to 52 bcm stipulated in the contract.

Instead, a large amount of Russian gas will be imported at the end of the year when the price of Russian fuel for Ukraine will be lower, he said.