Company history

July 2004

Based on a joint political resolution, ROSUKRENERGO is founded as a cooperative venture between Russian and Ukrainian shareholders. The company's purpose is to serve both sides as a coordinative platform for the sale of Central Asian gas in the Ukrainian marketplace.

Subsequently, a process is launched for the creation of reliable investment mechanisms that are necessary to finance increased transmission volume in the territories of Central Asian states. This step is also a means of ensuring a stable pace of growth in the amounts of Central Asian gas supplied to Ukraine and Europe.

In light of the magnitude of investments involved in the project, Russia and Ukraine agree to be represented by finance and credit institutions. That function is performed on the Russian side by Gazprombank, while the Ukrainian side proposes the involvement of Raiffeisen Investment AG in Vienna.

January 2005

ROSUKRENERGO commences its business and development activities. The company starts supplying Turkmen gas to state-run Naftogaz Ukrainy in Ukraine, as well as Kazakh gas on the basis of its own direct contracts.

February 2005

ROSUKRENERGO's inventories are of Russian, Uzbek and Turkmen origin, which are taken over within the framework of agreements with Gazprom and its subsidiary companies.

July 2005

ROSUKRENERGO is involved in the conflict concerning Gazprom's natural gas, which is held in underground Ukrainian gas storage facilities. ROSUKRENERGO purchases that gas and pays Gazprom the valid European market price at that time. As a result, the company assumes vis-à-vis Gazprom the function of a guarantor who vouches for the debts of Naftogaz Ukrainy as well as assumes the risks* related to the further use of this volume of natural gas.

* Leading international insurance companies assess the corresponding insurance fee as amounting to roughly 40% of the value of that gas.

December-January 2005—2006

ROSUKRENERGO plays a decisive role in the solution of the gas crisis between Russia and Ukraine. In an agreement dated January 4, 2006, ROSUKRENERGO, Gazprom and Naftogaz Ukrainy commit to the following procedure:

• Ukraine is to be supplied with relatively inexpensive natural gas for its own use, while Gazprom for its part has the opportunity to sell Russian gas at going market prices;
• The previous «transport versus delivery» barter regulation is abrogated in favor of a market-consistent business relationship under which all gas and transit invoicing is settled only in monetary form. This increases the reliability of supplies of Russian gas to European consumers, as well as the transparency of the gas delivery to Ukraine.

January 2006

ROSUKRENERGO begins to supply Ukraine and Europe with Russian natural gas as well as gas of Central Asian origin on the basis of the Gazprom agreements.

February 2006

ROSUKRENERGO and Naftogaz Ukrainy establish a Joint Venture company named Ukrgaz-Energo AG, whose primary activity is to supply the Ukrainian domestic market with natural gas originating from the territories of the Russian Federation.

Today

Today, ROSUKRENERGO plays the role of a mediator of interests between Russia and Ukraine with regard to collaboration in natural gas issues. On the one hand, it acts as guarantor for natural gas deliveries to Ukraine at prices that are tolerable for the economy of that country and, on the other hand, ROSUKRENERGO is financial guarantor for Gazprom, to which it makes the appropriate payments for natural gas supplied to Ukraine.