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Ukraine does not pay for gas, waiting for Russian loan

April 04, 2014, 16:48 UTC+3 KIEV
Russia has not fulfilled its obligations under the gas contract, Ukrainian parliament-appointed energy and coal mining industry minister Yuriy Prodan says
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Ukrainian parliament-appointed energy and coal mining industry minister Yuriy Prodan

Ukrainian parliament-appointed energy and coal mining industry minister Yuriy Prodan

© ITAR-TASS/Vladimir Sindeev

KIEV, April 04. /ITAR-TASS/. In Ukraine's view, Russia has not fulfilled its obligations under the gas contract, as it has not provided the promised $15 billion loan in full, Ukrainian parliament-appointed energy and coal mining industry minister Yuriy Prodan said in an interview on "Rain" television.

"There were obligations and agreements. Among the agreements of 2013 were obligations of the Russian side to provide a $15 billion loan for Ukraine. You know, the first part,$3 billion, was given in December 2013, and Ukraine received it. The second part was to come in February 2014. Russia also assumed an obligation to give a $2 billion loan. There were agreements and obligations of the Ukrainian side that the money would be paid by Ukraine for gas," Prodan said. "There were such agreements. Now we are looking for official confirmation of the agreements."

The loan was not provided. So, it was wrong to say Ukraine did not fulfill its obligations, he added, noting the new government was formed on February 28, but there was no mutual fulfillment of the obligations.

"Proceeding from objective conditions, there is a possibility to agree on the price," he believes.

The price of $268.5 for a thousand cubic metres (bcm) would suit him. "We are ready to pay it," he said.

Infographics Russian gas in Europe Russian gas in Europe
One-third of gas consumed in EU comes from Russia. Infographics ITAR-TASS

On April 3, Gazprom head Alexei Miller said the gas price for Ukraine was set at $485 a thousand cubic metres (bcm) from April 2014. The increase is due to the cancellation of the Kharkov agreements and consequently the $100 discount for Ukraine.

Earlier this week, Miller met with European Energy Commissioner Gunther Oettinger to discuss ensuring of Russian gas supplies to Europe in the context of the increased gas prices for Ukraine. Without filling the gas storage facilities, it is impossible to ensure uninterrupted transit due to technological characteristics of the Ukrainian gas transportation system.

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