Russia, Ukraine and the European Commission wrapped up another long period of gas consultations late on Monday, agreeing on a stable basis for the coming days to be able to work out a gas price and re-payment plan without gas disruptions.
“Today we had an intensive discussion on a payment plan for those invoices that are still open and we discussed a price for the future,” EU Energy Commissioner Günther Oettinger told a solo press conference, following the trilateral meeting on energy in Brussels on Monday. Oettinger, Ukrainian Energy Minister Yuri Prodan and Russian Energy Minister Alexander Novak as well as the CEOs of Russian gas monopoly Gazprom and Ukraine’s Naftogaz tried to seek a solution that would ensure uninterrupted gas supplies to Ukraine and Europe.
“On both items the two CEOs worked out a proposal which is now being checked out by their governments and also their specialists and they will come back to us,” Oettinger said.
“My request and my expectation was that we come up with a package that covers the period until at least the end of June next year so that we have a mid-term guarantee of security of energy provision so what we are talking about is a price for the delivery of necessary amounts covering June 2014 to the end of June 2015,” he said, adding that the price would be over $268 and $485 per 1,000 cubic metres.
The EU energy commissioner said that following the proposals tabled today the three parties plan for another trilateral discussion. “This may occur at the end of this week. It could also be towards the middle or even the end of next week,” Oettinger said.
“The important thing is that during this period during which two CEOs and their experts and their government representatives are considering these proposals for a future price and a re-payment plan as part of a package we agreed that during this period of analysis there will be no interruption or difficulties with supply of gas,” Oettinger said.
“Rather during this period as far as Ukraine and its market is concerned and the European Union there would be a stable ongoing deliveries of gas,” he said, adding that they also agreed that during this period neither of the parties would initiate a legal at the arbitration court in Stockholm and no pre-payment requirements would be made.
“This gives us a stable basis for the coming days to be able to work out options for the future and to be able to examine these proposals in both Kiev and Moscow and then return in a few days for a subsequent round of negotiations with the Commission,” Oettinger said.
Earlier in the day, Russia pushed back until next week a possible cut in gas shipments.
Gazprom had previously threatened to switch off Ukraine’s gas as soon as this Tuesday unless it began paying up front for supplies, a measure that could potentially have also affected Russian gas supplies to Europe.
But after Ukraine paid some of its gas debt, Gazprom announced a six-day extension of the deadline until 9 June. Gazprom also said that it would not sue Ukraine’s gas supplier Naftogaz over unpaid bills during the coming week.
“Today $786 million was paid into Gazprom’s account,” Gazprom CEO Alexey Miller told journalists on Monday. “We welcome the start of the payment of Ukraine’s debt. Payment for May should be done before 9 June,” Miller said in a statement.
Analysts say Russia is prepared to reach some sort of a compromise - otherwise there would have been little to be gained by delaying the implementation of pre-payment.
The gas price dispute emerged when Gazprom cancelled the discounts it awarded pro-Kremlin leader Viktor Yanukovych prior to his February fall. Ukraine had branded the Russian state-controlled gas company’s decision to nearly double its gas price a form of “economic aggression”.
Past pricing disputes between Moscow and Kiev in 2006 and 2009 took place during times of peak winter demand, causing shortages across Europe.
Russian gas transits through Ukraine supply about 15% of European needs.
Gazprom’s decision to extend the deadline comes as the EU prepares for a week of intense diplomacy over Russia and Ukraine.
Russian President Vladimir Putin and Ukraine’s new president-elect Petro Poroshenko will be in France on Thursday and Friday for events commemorating the allied forces’ D-Day landings in Normandy during World War II.
During Putin’s visit at the D-Day celebrations there are no plans for talks with Poroshenko or US President Barack Obama, the Kremlin said, but it did not rule out the possibility of informal meetings. They are all due to attend a lunch on 6 June.
Putin has said he is prepared to work with Poroshenko, who won Ukraine’s presidential election a week ago. But the past week has also seen a sharp increase in violence in eastern Ukraine.
http://www.neurope.eu/article/eu-russia-ukraine-try-avoid-gas-price-war