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Poroshenko says Ukraine, Russia agreed on gas price for winter

October 19, 2014, 0:57 UTC+3 KIEV
“Our position, along with the European Union, was clear-cut: $325 in the summer and $385 in the winter,” he said
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© EPA/SERGEI KOZLOV

KIEV, October 18. /TASS/. Ukraine and Russia have reached an agreement on the gas price for the winter, Ukraine’s President Petro Poroshenko said on air at the Ukrainian First National TV channel on Saturday.

“Our position, along with the European Union, was clear-cut: $325 in the summer and $385 in the winter,” he said adding that the winter price was on the negotiating table.

“Russia has agreed,” Poroshenko said without specifying the amount of final gas price for the winter.

On Friday, Poroshenko said after his meeting with Russian President Vladimir Putin in Milan he hoped to reach gas agreements with Russia before a meeting between representatives from Kiev, Moscow and Brussels due on October 21 in Brussels.

“We do have certain progress but some details are yet to be discussed,” he said then.

Poroshenko pledges Ukraine will have gas in the winter, he said .

On Friday, Poroshenko said after his meeting with Russian President Vladimir Putin in Milan he hoped to reach gas agreements with Russia before a meeting between representatives from Kiev, Moscow and Brussels due on October 21 in Brussels.

“We do have certain progress but some details are yet to be discussed,” he said then.

The Russian President Vladimir Putin said on Friday that the Milan meeting achieved certain progress on the gas issue. “We have come to terms with the Ukrainian partners regarding the conditions of resuming supplies of gas to Ukraine, at least for the winter period. We agreed the parameters of that agreement,” he said.

Russia has been underpaid at least 5.5 billion dollars of Ukraine’s debt, and it is prepared to reconsider the price of gas. “But we are prepared to recalculate that figure in retrospect and offer a 100-dollar discount. If we proceed from that, the overall debt will stand at 4.5 billion dollars,” he said.

He warned that Russia could no longer afford to take additional risks. He recalled that late last year Russia had lent Ukraine three billion dollars and that Ukraine’s debt for the previously supplied gas was already 4.5 billion dollars. Gazprom shifted to mandatory pre-payment and under the contract it is unable to change the terms of supplies, Putin said.

Putin urged the Europeans to reconsider their attitude.

“We are aware of the financial condition of the Ukrainian partners. We do see that they really have problems, such as the cash gap. We have already agreed to meet them halfway in a sense as far as the payments for the already consumed gas are concerned, and we hope that our European partners, the European commission, will extend a helping hand to Ukraine to deal with the cash gap problem,” he said.

Russian Energy Minister Alexander Novak said on Friday that Russia and Ukraine agreed that the gas price for the winter will total $385 per 1,000 cubic meters, and Kiev was ready for prepayment of supplies.

“The question now is whether Ukraine has sources to repay the debt and pay for current deliveries,” Novak said. The Russian energy minister said work would now be conducted to seek financial guarantees and sources of financing with involvement of the European Commission.

He said the talks will resume on October 21 in Brussels.

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