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Russia and Ukraine fail to reach gas deal ahead of cut-off deadline

Published time: June 15, 2014 20:37
Edited time: June 16, 2014 01:33
AFP Photo / Alexander Zobin

AFP Photo / Alexander Zobin

Russia and Ukraine failed to resolve a gas pricing dispute during Sunday talks in Kiev. Gazprom says its demands have not changed and Kiev is expected to pay its debt of $1.95 billion by 06:00 GMT on Monday, otherwise the gas supply will be stopped.

Gazprom’s position remained unchanged after EU-brokered negotiations finally ended around 2:30 a.m. Moscow time (10:30 p.m. GMT) on Monday, Gazprom spokesperson Aleksey Kupriyanov told reporters.

If Ukraine’s gas debt is not paid on time, Russia will be switching to an advance payment system, which will essentially stop gas supply to Ukraine, he added.

"We reached no agreement and the chances that we will meet again are slim -- we are already on the plane heading back (to Moscow)," Kupriyanov told AFP. "If we receive no pre-payment by 10:00 am (0600GMT), then we obviously will deliver no gas."

In his turn, Ukrainian Energy Minister Yury Prodan said that Ukraine is prepared for the cut-off of gas supply from Russia.

However, the head of Ukraine’s Naftogaz said that EU Energy Commissioner Gunther Oettinger suggested a temporary price of US$300-385, adding that there is a chance that this compromise can be achieved before the deadline.

The talks were attended by Gazprom head Aleksey Miller, Ukrainian PM Arseny Yatsenyuk, and EU Energy Commissioner Gunther Oettinger.

The previous round of talks over the price of Russian gas for Ukraine failed to reach a solution to the standing Ukrainian $1.95 billion gas debt. Ukraine have not been paying for most of the gas supplied by Russia this year and demands that the contract on the deliveries be amended.

Russia offered a discount to the price, but Ukraine rejected it, saying it wants the price to be lower.

Ukraine has been pushing for the gas price to be set at $268 per 1,000 cubic meters, Ukrainian Energy Minister Yury Prodan told reporters on Saturday.

The latest price proposed by Russia stands at $385. On Friday, Kiev said it is ready to pay $326 per 1,000 cubic meters.

Comments (129)

 

Z Gus 16.06.2014 18:48

Finally! I was getting frustrated by the long patience of the Russians. Still I must admit Mr. Putin is smarter than most. Now we have a well documented history of reasonable offers, repeated extension of gas non-payments and black mail by the Ukrainians.
Next time Ms Nuland goes to the Ukraine; they have wheat they can make cookies. Bring some bottles of gas with you!

 

Bear 16.06.2014 14:18

If in charge I would just shut off supply to the rouge country.

If Ukraine needs gas then let America and the EU supply it or pay for it for it was they that brought about this whole mess anyways.

With enough gas in storage Ukraine would have plenty of time for their new dictators to supply or pay for it.

 

Raz.Dwa.Trzy 16.06.2014 09:58

Apparently Russia have recently finalised (or almost finalised) a deal with China over Gas.
Maybe the USA are coaxing Ukrain to try to get a deal that undermines the deal struck with China by winning an agreement to pay less than the Chinese have agreed to pay. That would of course be highly disrespecftul. USA, Either do something useful or go home.

View all comments (129)
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