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Russia-Ukraine gas dispute

Ukraine’s president says gas compromise highly probable

Talks are under way on conditions for supplies of Russian gas to Ukraine on a temporary agreement

KIEV, October 25. /TASS/. Ukraine’s President Pyotr Poroshenko expects that agreements on Russian gas supplies will be reached at the talks within the three-party format of Russia, Ukraine and the European Commission /EC/ on October 29.

“It is highly probable that we will find a compromise on gas next Wednesday,” Poroshenko said on air at the First National TV channel.

Talks are under way on conditions for supplies of Russian gas to Ukraine on a temporary agreement.

Ukraine’s failure to repay its debt for already supplied gas is the key obstacle to a temporary gas deal with the Russian Federation, European Energy Commissioner Guenther Oettinger said after three-party talks on Tuesday.

Oettinger added that the price of $385 per 1,000 cubic meters has been agreed.

Ukraine’s debt to Gazprom is $5.3 billion, Novak said. “The debt of Ukraine totals $5.3 billion; out of the sum, $1.4 billion will be repaid by the end of October. A total of $3.1 billion will be repaid by the end of the year,” Novak said.

According to the minister, prepayment for gas deliveries to Ukraine in November 2014 should make up $770 million.

Ukraine, which transits Russian gas on to European consumers, currently does not receive Russian gas for its own needs due to an unsettled dispute with Moscow over prices.

Russian state-controlled energy giant Gazprom on June 16 switched Ukraine’s national oil and gas company Naftogaz to prepayment for gas supplies because Kiev failed to pay part of its gas debt by the deadline of 10:00 Moscow Time on June 16.

Gas supplies to Ukraine for its own needs were halted, but transit volumes were reportedly passing via Ukraine to Europe in line with the schedule.

Russian President Vladimir Putin pledged October 17 that Russia will provide enough gas to Europe in winter.

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Oil & Gas Russia-Ukraine Gas Dispute

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