Russian Prime Minister Dmitry Medvedev signed a decree on Thursday,
setting the gas price for neighbouring Ukraine, a day before talks on
the so-called winter package between the two countries restarted in
Brussels.
Russia and Ukraine agreed a 10-year gas deal in 2009 after a price
war lead to Russian supply cuts to Ukraine and lower volumes for Europe.
This deal still exists, but because of the crisis in Ukraine, the two
countries now negotiate gas supply agreements on a short-term basis.
Ukraine said that $220 per 1,000 cubic metres (tcm) was an acceptable
price for supplies from Russia, while Russia has said $250 is more
appropriate.
Moscow and Kiev agreed last year on a winter package for supplies
with a price discount of $100 per thousand cubic metres and advance
payments. That agreement expired on July 1 and has yet to be replaced.
In July, Russian gas giant Gazprom halted gas supplies to Ukraine
after the breakdown of talks between Moscow and Kiev. Gazprom said Kiev
had failed to make prepayment for future supplies. Ukraine transports 15
percent of gas consumed in Europe, and its reserves are running low
since Gazprom turned off the tap.
Russia and Ukraine have been locked in a standoff over gas since a
pro-Western uprising ousted ex-President Viktor Yanukovych and took
control of Kiev last year.
Recent weeks have seen fresh attempts to resolve the conflict with
the approach of winter, when demand for gas in Ukraine and Europe will
rise.
Russian and European officials on September 11 appeared to reach a
tentative deal to end the gas dispute, with the EU providing Ukraine
$500 million to buy Russian gas so that it can replenish its reserves
and ensure uninterrupted gas transit.
http://neurope.eu/article/gas-talks-between-russia-and-ukraine-resume-in-brussels/