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Russia-Ukraine gas dispute

Ukraine's energy minister says Kiev likely to receive gas discount from Russia’s Gazprom

Kiev is in talks with the European Union on granting financial aid to Ukraine which is necessary for gas purchases

Ukraine's Minister of Energy and Coal Industry Vladimir Demchishin Maxim Nikitin/TASS

Ukraine's Minister of Energy and Coal Industry Vladimir Demchishin

© Maxim Nikitin/TASS

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Minister: Russia won't sign document after gas talks if it has no EU, Ukraine commitments

KIEV, June 8. /TASS/. Ukraine expects the cost of Russian gas to be lower than the price for reverse gas for the country on the European market in the third quarter of this year, Ukraine’s Minister of energy and coal industry Vladimir Demchishin said on Monday.

Currently, Ukraine purchases gas via European countries at the price of around $250 per 1,000 cubic meters, Demchishin said.

"According to the formula, the price for Russian gas in the third quarter should stand at around $295-296, no reasons to overpay $45. We will simply not buy it," he said, adding that Ukraine is striving for "a market cost" of the Russian natural gas for itself.

"If Russians want to sell, it they should give us a market cost. I think the Russian price will be lower than the European one," the Minister said. "The current progress in negotiations gives no reasons for thinking we will not receive the discount," he said, adding that he sees way clear to receiving discount from Gapzrom.

The next round of trilateral gas talks will take place in the third ten-day period in June, Demchishin said.

Russia’s Energy Minister Alexander Novak said on June 4 that currently the duration of the new gas discount for Ukraine is being discussed. The plan is to discuss the issue during a trilateral meeting at the end of June.

About 11.5 bln cubic meters of gas to be accumulated by late June

According to the minister, Ukraine will stock about 11.5 bln cubic meters of gas in its underground storage facilities by the end of June.

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By now, Ukraine has accumulated about 10.8 billion cubic meters in its underground facilities, he said.

Demchishin said that Kiev still plans to store about 19 billion cubic meters of gas by the new heating season.

He added that the pace of pumping will depend on the amount of financing.

According to Demchishin, Kiev is in talks with the European Union on granting financial aid to Ukraine, which is necessary for gas purchases.

The minister also said that by the start of the heating season Ukraine also plans to accumulate 2.5 mln tonnes of coal in the storage facilities of thermal power plants, which includes 1,5 mln tonnes of gas coal and 1 mln tonnes of anthracite coal.

Demchshin said that Ukraine is able to ensure sufficient volumes of gas coal on its own but plans to import anthracite coal "from all possible destinations".

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Gazprom Russia-Ukraine Gas Dispute

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