Tuesday, October 21, 2014

Gas talks on "winter package": Russia will deliver Kiev gas at $ 385 until March, the problem - in unpaid debt




EU Energy Commissioner Guenther Oettinger told about not the most successful negotiations on gas supplies between the EU, Russia and Ukraine, which took place in Brussels on 21 October. According to him, they are expected more, although some progress has. For example, had been finalized “winter” price – $ 385 per thousand cubic meters of Russian gas. Ettinger also said that the principle of “take or pay” would not apply. But the problem is the debt of Ukraine has put fuel, reports “Interfax” .


“Firstly, we are talking about the price of gas at the time period until the end of March. Both parties accept (as it became clear even in Milan), the price of 385 dollars per thousand cubic meters. From the Russian partners is guaranteed. Price can not be changed unilaterally by the decision of the government or the parliament as a result of increasing the export duty, “- said Ettinger.


“Second, by the end of March as a deviation from the existing gas contract will not apply the principle of” take or pay. “This means that the Ukrainian side determines whether it will order the volumes of gas for delivery. But prepaid” – added the Commissioner.


Agreement on the “winter package” can be fixed at the level of the two agreements – between governments and businesses. According to him, the supply of gas to Ukraine until the end of 2014 could reach about four billion cubic meters. For five days, the Commission will determine how much gas can be paid by Ukraine.


The main obstacle for the conclusion of an interim agreement on gas between Russia and Ukraine – Kiev’s failure to pay the debt for already supplied fuel, Guenther Oettinger stressed. However, he promised that “Naftogaz” to the end of October to repay 1.45 billion dollars in debt and has 1.65 billion dollars by the end of the year.


“The talks, however, did not bring a breakthrough, which many of them had expected. But we achieved important progress, and I expect that next week we have to reach agreement on a” winter package “, – commented on the meeting European official.


The next round is scheduled for next Wednesday, 29 October, in Brussels.Ettinger said that the tripartite gas talks between Ukraine and Russia with the participation of the European Commission apply only to conditions of supply in the winter until March 31, 2015. After that, the dialogue between Moscow and Kiev will lead a different European Commissioner for Energy, Günther Oettinger since stepping down at the end of October this year. “On a summer package will say let my successor,” – said the European official.


Add previously Prime Minister Yatsenyuk said that under the current transit contract Kiev can not fully guarantee the uninterrupted transit of Russian gas to Europe. Vladimir Putin stressed that Russia will reduce gas transit through Ukraine if it starts to select it for their needs.


Against the background of these concerns Ettinger presented in Brussels on the results of stress tests of European energy system in the event of a supply of gas through Ukraine. According to tests, the EU can survive a six-month halt supplies from Russia.


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