Friday, October 31, 2014

Russia-Ukraine Gas Conflict....A deal that never will work in practice?


Friday, October 31, 2014
Russia-Ukraine Gas Conflict....A deal that never will work in practice?


Russia-Ukraine Gas Conflict....A deal that never will work in practice? (RN).

1. Ukraine to Pay off $1.45 Bln in Russian Gas Debt Immediately: Oettinger
Ukraine has confirmed that it is ready to pay off $1.451 billion in Russian gas debt immediately, and to cover $3.1 billion of its debt to Russian energy giant Gazprom by the end of the year, EU Energy Commissioner Guenther Oettinger said.

“Ukraine is ready to pay $1.451 billion for gas deliveries during November-December 2013 and April-May-June 2014,” Oettinger said following a trilateral gas meeting late on Thursday.

“Until the end of the year Naftogaz will send a second tranche to pay for the open gas bills, which will amount to $1.65 billion. This way, Naftogaz will pay Gazprom 3.1 billion, so the disputable amount will decrease, the decision on which will be taken by the Stockholm Arbitration Court,” he added.

Ukraine also agreed to pay for at least 4 billion cubic meters of Russian gas, allowing uninterrupted supplies to the European Union during winter.

“Ukraine would be able to prepay for 4 billion cubic meters of gas,” Oettinger added.

Guenther Oettinger stated that Russia agreed to give Ukraine a $100 per 1,000 cubic meters discount until March 2015 in a form of export duty reduction.

2. Ukraine, EU Jointly Found Financing to Ensure Gas Purchases From Russia: Prodan?
Energy Minister Yuriy Prodan :
"Together with the European Commission we have managed to secure financing to purchase the necessary volumes of [Russian] gas," Prodan said following a trilateral gas meeting late on Thursday.
"These volumes will guarantee secure and reliable gas deliveries through Ukraine to the European Union," Prodan said.

Following the talks, EU Energy Commissioner Guenther Oettinger said* that the EU, however, has not agreed to pay for future gas deliveries to Ukraine and has not guaranteed to pay for the majority of the country's open bills Nevertheless, Oettinger stated that the EU together with the International Monetary Fund are currently working on a financial aid program to Ukraine for year 2015, which would help Kiev to pay for gas deliveries in February-March 2015.

Russia and Ukraine on Thursday held the final round of talks, mediated by the European Commission, to find an interim solution to the standoff over Ukraine's unpaid gas bills and the price Kiev will pay for Russian gas supplies during the upcoming winter.

 Update:

BRUSSELS, October 31 (RIA Novosti) - The European Commission has agreed to stipulate financial guarantees of payments for Russian gas supplies to Ukraine through March 2015 in an official letter to Kiev, Gazprom CEO Alexei Miller said.

A separate bilateral protocol on gas payment guarantees between the EC and Ukraine was expected to be signed on Thursday as the Russian side considered it a key precondition for implementation of the so-called "winter package" trilateral gas deal.

The protocol, however, was not signed, and EC Energy Commissioner Guenther Oettinger told reporters, following trilateral gas talks in Brussels on Thursday, that the European Union had not provided binding guarantees to Russia. Following the talks in Brussels, Oettinger said that the EU has not agreed to pay for future gas deliveries to Ukraine and has not guaranteed to pay for the majority of the country's open bills.

"It will all be detailed in a letter from the European Commission to Ukraine. The letter will mention certain financial guarantees, certain agreements between the EC and Ukraine," Miller told reorters in a separate press point.

Hmmm....*It's Pretty obvious there is NO deal on financing future gas deliveries, Get ready for gas shut off once Ukraine starts siphoning gas designated for Europe.
Full oversight of the Gas story here

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