Russia, EU, Ukraine fail to reach agreement at gas talks

Russia, Ukraine, and the European Union failed to reach an agreement on gas supply issues during three-party talks in Warsaw on Friday. Kiev vowed to fulfill its gas transit obligations, but did not say when it plans to repay debt to Russia’s Gazprom.
According to EU energy commissioner Guenther Oettinger, the sides have agreed to hold two more rounds of consultations, in two and four weeks. During their next meeting in mid-May, the sides will focus on gas prices for Ukraine, Oettinger told journalists on Friday.

Moscow, Kiev, and Brussels gathered in Warsaw to search for a solution to the “crisis situation” around Ukraine's payments for Russian gas, the Russian Energy Ministry said earlier.
Ukraine's debt to Russian energy giant Gazprom has already reached US$3.5 billion, but the sides have so far failed to come to a compromise over the price that Ukraine should pay for the natural gas supplies.

• “Our Ukrainian colleagues did not say anything about when they would pay for the gas they already received and they will receive later,” Russian energy minister Aleksandr Novak told journalists after the Warsaw talks.

“Today, we took a decision that Gazprom will not demand advance payment in April,” he said, as quoted by Itar-Tass. “May 16 is the date when a bill for gas supplies in June will be issued. They will have a time span until May 31 to pay it. If the bill is not paid by that date, Gazprom will have a possibility to limit gas supplies or to supply as much gas as is paid for until May 31.”
The head of the Russian delegation also noted that Ukraine has received $3.2 billion from the International Monetary Fund (IMF) as part of a $17 billion loan package and could use the money to pay its debt.

• Ukraine’s energy minister, Yury Prodan, argued that the IMF loan will “switch on” the country’s economy and help it to grow.

“Then gas consumption will increase and the ability to pay for the gas will grow,” Prodan said. State-owned energy company Naftogaz will get “balanced financing, and there will be very possibility to pay for gas that Ukraine receives from external sources,” he added.
At the same time, Kiev is set to seek a reduction of price for Russian gas since it is not able to pay the current rate.
“We are unable to pay almost $500 per 1,000 cubic meters,” Prodan said. "The Ukrainian side has repeatedly asked the Russian side to return to the price of $268 per 1,000 cubic meters. Ukraine has agreed to repay its debts at this price.”.....................http://rt.com/business/156408-eu-gas-ukraine-russia/
2/5/14
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Related:

• Naftogaz sends proposals to Gazprom on revising gas price. - A fair market-based price should be $268.1 per 1,000 cm

• Gazprom sends Ukraine $11.4bn bill for unshipped gas. - In the take-or-pay contract Ukraine is obliged to pay for the volume agreed

• Ukraine ready to pay $386 per 1,000 cubic metres of gas