G7 to aid Ukraine if Russia disrupts gas supply
May 10, 2014, 8:52 am

From left, EU Joint Research Centre’s director general Dominique Ristori, Japan’s Economy, Trade and Industry Minister Toshimitsu Motegi, Germany’s Economy and Energy Minister and deputy chancellor Sigmar Gabriel, France’s Ecology and Energy Minister Segolene Royal, Italy’s Economic Development Minister Federica Guidi, Britain’s Secretary of State for Energy and Climate Change Edward Davey, U.S. Secretary for Energy Ernest Moniz and Canada’s Natural Resources Minister Greg Rickford pose for a photo on the occasion of the G7 meeting for Energy in Rome, Tuesday, May 6, 2014 [AP]

“We will be drawing up an emergency winter response if Russia threatens its gas supplies, which will be discussed again at the G7 Heads of State meeting next month,” British Energy and Climate Change Secretary Ed Davey was quoted by a report in the UK daily Independent.

The report said the US is planning to withdraw restrictions on shale gas export to help the G7. The group of the seven most developed nations plans to increase its energy efficiency include the construction of terminals for liquefied natural gas (LNG), and expanding the network of the existing pipelines.

On May 8, Russian Energy Minister Alexander Novak announced the switch to advance payments for gas supplies to Ukraine starting in June.

He noted that the May 7deadline, when Ukraine’s state-run gas company Naftogaz was expected to transfer payments for April deliveries, has expired. Russia says Naftogaz has not transferred a single gas payment since March this year, with Ukraine’s total gas debt reaching $3.5 billion.

The Russian Minister added that by May 16, Gazprom is to bill Naftogaz for June deliveries. The de facto supply will strictly correspond to the amount paid by the Ukrainian side until May 31.

On April 1, the price of Russian gas for Ukraine has risen to $485 per thousand cubic meters replacing the old price of $268.50, which was in force before Russia withdrew two major discounts.

Amid the Western nations standoff with Russia over the Ukraine crisis, French Foreign Minister Laurent Fabius said the EU should not engage into armed conflict with Russia.

“We cannot accept the annexation [of Crimea] or the fact that Ukraine would be controlled or invaded. On the other hand, we should not go to war with Russia. In between, you have diplomacy and sanctions to exert pressure,” Fabius told The Washington Post.

Fabius also added that France has not yet made a decision on Mistral helicopter ships deal with Moscow.

“Many people have commercial interests with Russia. As far as this case is concerned, the decision by the government will be taken in October,” he said.

TBP and Agencies