Russia-Ukraine gas supply set to resume
November 2, 2014, 6:07 am

File photo of Putin with German Chancellor Angela Merkel and Ukrainian President Petro Poroshenko [PPIO]

“Gazprom is ready to start gas deliveries to Ukraine after Ukraine’s Naftogaz fulfills its commitments fixed in the [Brussels] protocol,” Sergei Kupriyanov, a spokesperson for Gazprom said.

Russian Prime Minister Dmitry Medvedev has signed a decree to apply a discount of $100 on export tariffs depending on the price of the gas.

“Export duties will be calculated using the following formula: a discount of $100 per 1,000 cubic metres will apply at the price of $333.3, and a discount of 30 percent at the price below $333.3,” said an official decree signed by Medvedev on Friday.

According to the $4.6-billion- pact, Ukraine will receive gas from Russia starting from November 2014 through the end of March 2015 on a prepayment mode.

Kiev will pay Moscow its $3.1 billion gas debt in two tranches by the end of the current year to resume gas deliveries.

The price of Russian gas for the “winter package” will be established in accordance with the existing contract, taking into account the discount of $100 per 1,000 cubic meters.

Ukrainian Prime Minister Arseny Yatsenyuk on Friday instructed the country’s Finance ministry, the national bank and Naftogaz to start paying for Russian gas deliveries.

Earlier last month, Russian President Vladimir Putin had said Moscow would not create a gas crisis in Europe.

“We do not wish any kind of crisis this winter. I am absolutely responsible when I claim that no crisis will occur due to Russia’s fault. We have enough gas to satisfy both our own needs and the needs of our clients in Europe and Asia,” Putin said.

On Friday, Putin had a telephone conversation with German Chancellor Angela Merkel, French President Francois Hollande and Ukrainian President Petro Poroshenko.

“The four leaders welcomed the agreements reached on conditions for Russian natural gas supplies and transit via Ukraine. This marks a big step forward in ensuring uninterrupted gas transit to Europe,” said a Kremlin statement.

More than a quarter of the EU’s total gas needs were met by Russian gas, and some 80% of it came via Ukrainian pipelines. Six EU countries depend on Russia for 100 per cent of their gas imports.

Russia has repeatedly stressed that transit risks would be reduced by building the planned gas pipeline South Stream that would bring Russian gas to Europe across the Black Sea, avoiding Ukraine.

TBP and Agencies