Ukraine must pay $2 bln to restart Russian gas supplies

MOSCOW, Aug 29 (PRIME) -- Ukraine must pay at least U.S. $2 billion of its $5.3 billion debt for the Russian gas supplies to restart them, Energy Minister Alexander Novak said in a news conference Friday following his meeting with E.U. Energy Commissioner Gunther Oettinger.

Novak said the amount includes $1.4 billion of debt for the gas supplied in 2013 and a partial repayment of debt for gas delivered since April.

He also said Russia is ready to provide Ukraine with a U.S. $100 discount for the gas price, which currently amounts to $485.5 per 1,000 cubic meters, and it will not violate the current contract and Russia’s position in the arbitration court as it is not a corporate discount.

Ukraine’s daily gas consumption will amount to 140-220 million cubic meters in winter. Considering the country has about 16 billion cubic meters of gas in its underground storages, Ukraine has to buy 10 billion cubic meters of gas from Russia to protect the transit, Novak said.

Novak also said that Gazprom is diversifying supply risks and increases the amount of gas it is pumping in the E.U.’s underground storages. Considering the Yamal-Europe pipeline and a possible increase in supplies through the OPAL pipeline, Gazprom can cover 40-50% of Europe’s gas deficit if Ukraine steals all transit gas meant for the E.U.

Oettinger said a definite progress was reached during the meeting and Naftogaz’ debt is indisputable. The schedule of Ukraine’s debt repayment will be compiled in the nearest future, he added.

The date of the next gas talks between Russia, Ukraine and the E.U. will be set at the beginning of September, Novak said.

Previous negotiations were broken in early June, when they hit a dead-end. Gazprom then agreed to recalculate the April–May debt on the basis of a U.S. $384.86 price, but Kiev wanted the price to be set at $326.00.

On June 16, Gazprom switched Ukraine off gas over the debt and filed a U.S. $4.5 billion suit to the Stockholm arbitration court. Later, Kiev reciprocated by a suit against Gazprom for making Ukraine overpay $6 billion for gas since 2010, setting too high prices in its contract.

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