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Russia ready to supply Ukraine with gas to live through winter — minister

October 06, 2014, 15:37 UTC+3

Russia' Gazprom is ready to provide 10 billion cubic meters of natural gas to Ukraine

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© ITAR-TASS/Alexandr Rumin

MOSCOW, October 6. /TASS/. Russia is ready to supply 10 billion cubic meters of natural gas to Ukraine to live through the fall-winter period, Russian Energy Minister Alexander Novak said on Monday.

“Gazprom may supply minimum volumes to [Ukraine’s] Naftogaz — 5 billion cu m under the ‘take-or-pay’ clause and under the regime of advance payments,” Novak said at a meeting with Russian Prime Minister Dmitry Medvedev.

“Naftogaz will be required to prepay for 5 billion cu m while an additional option may be used for another 5 billion cubic meters but this time not under the ‘take-or-pay’ clause but in accordance with the system of additional requests, if such are required as a result of winter and the temperature regime,” Novak said.

Alexander Novak said on October 4 that the date of the next trilateral gas meeting between Russia, the European Union and Ukraine would be named on October 7.

Tripartite gas talks with the participation of Russia, Ukraine and the European Commission can be held in Brussels or Berlin in a week, Ukrainian Energy and Coal Industry Minister Yuri Prodan said on Monday.

“The Russian and Ukrainian sides have presented their proposals. Now the European Commission is studying them,” Prodan said.

Infographics Ukraine’s debt burden

Ukraine’s debt burden

August 29, IMF Board of Directors discusses the second tranche for Ukraine amounting to $1.4 billion, which was postponed due to instability in south-eastern Ukraine. The country received the first tranche in April 2014. Earlier, April 30, the IMF approved a two-year credit totaling $17 billion for the support of the economic program. Infographics by ITAR-TASS
Russia-Ukraine gas dispute

Russia raised the gas price for Ukraine from $268.5 to $485.5 per 1,000 cubic meters from April 2014. Ukraine said it would not pay for Russian natural gas supplies at such a high price.

The Ukrainian national energy company Naftogaz stopped paying for Russian natural gas supplies from March 25, 2014.

After Russia and Ukraine failed to reach a compromise on the gas issue, Naftogaz and Gazprom filed mutual claims to the Stockholm Arbitration Tribunal.

The gas price for Ukraine has increased, in particular, by $100 per 1,000 cubic meters since April 1, 2014 after Russia denounced the 2010 Kharkiv accords on extending the lease of the Russian Black Sea Fleet’s base in Crimea in exchange for a gas price discount. The accords were denounced after the Black Sea peninsula joined Russia in the spring of 2014.

Russia also offered Kiev the second discount as part of an anti-crisis aid package for Ukraine in November 2013 but scrapped it from April 1, 2014 over Ukraine’s failure to repay its debts for Russian natural gas supplies.

In June, Gazprom halted gas supplies to Ukraine over its unpaid debt.

The average price of Russian natural gas supplies to Europe currently stands at $380-390.

Gazprom offered Ukraine a $100 price discount in August. Kiev rejected the offer, insisting on setting gas prices without any discounts.

“We again hear the price of $385 based on a $100 discount from the price of $485 due to the customs duty cancellation. This means that the Russian side considers the price of $485 to be fair and consistent with market trends. However, we believe this is a discriminatory price,” Ukrainian Energy and Coal Minister Yuriy Prodan said at the time.

The EU believes it is possible to set the price of Russian natural gas for Ukraine at $385 in winter and $325 in summer.

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