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  • How much has Russia paid Ukraine, in non-Ruble currency, for the gas transiting through Ukraine to EU in 2022?
  • How were the transfers accomplished? SWIFT?
  • Which entity was debited, and which entity was credited?
  • What currency was used?
  • What entity controls the incoming funds, and where are these funds held?
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  • TBH I'm not sure how informative this is without discussing the original [late 2019] contracts [and their monetary value], to say nothing of their political value at the time, being hailed as a big reconciliation between Russia and Ukraine oxfordenergy.org/wpcms/wp-content/uploads/2020/02/…
    – Fizz
    Apr 21 at 16:13
  • In Sep 2022 Naftogas filed for arbitration in Paris, claiming that "Funds were not paid by Gazprom, neither on time nor in full." naftogaz.com/en/news/new-arbitration-proceeding-against-gazprom But the details on that are rather sparse.
    – Fizz
    Apr 21 at 16:21
  • I think the question needs more clarity about how the transit fees are split between Russia and those who buy the gas, and how Ukraine pays for the gas that it purchases for itself.
    – Roger V.
    May 2 at 7:24
  • Voting not to close: Some see "multiple questions" here. But note that all of the questions are related and deal with the same broader question - what are the financial terms of the Russian-Ukranian gas contract. Splitting that into 5 questions does make our jobs easier. Others have pointed out that the questions lack details - I agree to that assertion partially. But the questions are still clear and can be answered factually (if we just know where to get the information from - as my incomplete answer shows, it isn't that easy to find). And what more info can the Questioner add?
    – sfxedit
    May 5 at 12:14

1 Answer 1

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I am sure an economist can chime in with better data than what I found.

1. How much has "Russia" paid, in non-Ruble, "Ukraine" for gas transiting through Ukraine to EU in 2022?

According to Bloomberg, Ukraine earns around $2 billion a year in transit fees. The Kyiv Independent however quotes Naftogaz CEO Vitrenko as saying that Ukraine earns around $1 billion in transit fees. Yet another source claims that Ukraine earned around $3 billion in transit fees in 2018. As to whether it was not in Russian Ruble, I am not sure (though I think it is highly unlikely that Russia would pay in any other currency).

2. How were the transfers accomplished? SWIFT?

Yes, through banks. And probably through SWIFT (unless Ukranian banks had a tie up, in the past, with Russia to use their system):

As the battle in Ukraine rages, the European Union has made official the list of Russian banks that will be expelled from SWIFT ... Notably, the ban excludes two of the country's biggest institutions, Sberbank and Gazprombank. The two were exempted because they handle most of the payments related to gas and oil exports, on which the EU heavily depends to produce energy ... Alternatives to SWIFT include China's CIPS, India's SFMS and Russia's SPFS, as well as more rudimentary methods such as tax and phone messages, which are time-consuming and pose security risks.

3. Which entity was debited, and which entity was credited?

I believe Russia's Gazprom pays the transit fees. Not sure who in Ukraine gets the money. According to Bloomberg:

Russian gas producers have so far avoided European Union sanctions, as have major state-owned banks Sberbank PJSC and Gazprombank PJSC, Vitrenko said. That means gas exporters can use their accounts to get revenues and pay back international contractors.

4. What currency was used?

Ukraine says Russia still pays in hard currency for natural gas transit. (No idea though whether it is Russian Ruble or some other currency).

5. What entity controls the incoming funds, and where are these funds held?

No idea who gets the fund now. In the past there were allegations of corruption and political controversies that friends of Ukraine's former President were getting these contracts. I assume that since Zelensky renewed the agreement this time, he must have changed the beneficiary (fighting corruption was one of the political planks that made him the President). Also have no idea of how (cash, bond, precious metals etc.) or where the funds are stored.

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  • naftogaz.com/en/news/full-european-embargo-russian - Looks like EU payments are being deposited in escrow accounts?
    – paulj
    Dec 28, 2022 at 22:16
  • @paulj - That is just a proposal / suggestion by Ukraine. I couldn't find any info that it has been implemented. Logically, it wouldn't be politically smart move as Russia would just stop supplying the gas or escalate tension.
    – sfxedit
    Dec 28, 2022 at 22:59
  • One of your links in re sums is from the beginning of 2022 [March], so it reflects the pre-invasion annual earnings from transfers, essentially for 2021. The Naftogaz CEO interview is from Oct. 2022,, but he seems to give a ballpark figure, not one specific to 2022. (Interesting because Naftogaz filed for arbitration in September, claiming Russia has paid "neither on time nor in full".) And they signed a new contract in 2019, which probably explains why the 2018 sums were [substantially] higher. Also, Naftogaz has in turn pay most of that money to GTSOU, a former subsidiary that was spun off.
    – Fizz
    Apr 24 at 15:16
  • ... which in part explains why Naftogaz filed for bankruptcy (reorganization) last year. But they won a more recent arbitration against Gazprom to the tune of $5 billion, regarding assets in Crimea. I'm not holding my breath Gazprom will pay though. (The claims in re Crimea were excluded from the 2019 deal.)
    – Fizz
    Apr 24 at 15:20
  • In fact, Naftogaz seems was not paying GTSOU that much. They owed GTSOU half a billion Euros (€573m) as of Jan 2023, so GTSOU might go bankrupt too icis.com/explore/resources/news/2023/01/25/10847984/…
    – Fizz
    Apr 24 at 15:27

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