Monday, May 26, 2014

Statement by the European Commission following the meeting of EU Commissioner Günther Oettinger, Russian Energy Minister Aleksandr Novak and Ukrainian Energy Minister Yuriy Prodan

European Commission, Statement, Berlin, 26 May 2014:

Substantial progress has been made today.  However, there is no breakthrough yet. 

The following solution is proposed subject to confirmation by Russian and Ukrainian authorities and gas companies until Wednesday 28 May 2014:

  1. Naftogaz commits to pay an amount of 2 billion US-Dollars by Friday 30 May 2014 and 500 million US-Dollars by Saturday 7 June as partial payments of the outstanding bills covering the period from November 2013 till March 2014 as well as the months of April and May 2014. These amounts have to be paid to the Gazprom bank account.
  1. Upon receipt of the first payment the consultation on the new gas price as of April 2014 shall start. Gazprom agrees to continue to supply gas for June without insisting on prepayment.
Subject to endorsement on these next steps a third round of political talks could take place on Friday 30 May 2014.
  • Russia is ready to continue talks on the price of gas being supplied to Ukraine, Russian Energy Minister Alexander Novak said after three-party gas talks in Berlin.
Russia and Ukraine have agreed that Kiev will partly pay its gas bills from November to April, inclusively, and from June to May, Novak said.

“The total amount of payments can reach 2.5 billion U.S. dollars. We are ready to continue discussing prices for gas which we deliver to Ukraine. We hope that the Ukrainian side will discuss our proposals with its leadership,” Novak went on to say.

“Other topics for discussion include financial assistance to Ukraine. The European Commission representatives informed us about the funds that were being allocated for the purpose,” the Russian energy minister stressed, adding Russia would continue meeting its contractual obligations to supply gas to Ukraine and the European Union.

Russia “is doing everything to ensure reliable supplies of gas to European consumers,” Novak said.
“Russia fully meets its commitments,” he added.


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