American press: Europe may be left without gas by refusing to pay for Ukraine
Brussels - Kyiv, October 22 (PolitNavigator, Vasily Ablyazimov) - Russia has introduced additional requirements for the resumption of gas supplies to Ukraine. The government of the Russian Federation asks the European Union to guarantee payment of the Ukrainian debt, writes the Financial Times today.
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The publication recalls that Moscow stopped gas supplies to Ukraine in June amid payment disputes and a conflict between Kyiv and pro-Russian forces in the Donbass. However, many officials expected that a new agreement on gas prices and a debt settlement schedule would be signed yesterday at a meeting in Brussels. But that did not happen. One of the reasons for the failure of the signing was Russia’s demand for the EU to guarantee payment of the Ukrainian debt. Russia asks within five days to provide it with evidence that international creditors or other organizations will be able to guarantee payment of Kiev’s gas debt
Alexander Novak, Russian Energy Minister, complained that Ukraine has not identified sources of financing for gas payments. He said Russia was seeking assurances from the International Monetary Fund, the European Investment Bank or other “first-class” banks to help Kyiv pay its bills. He also suggested that the European Commission could use its own budget.
“We have not received these assurances,” the minister said in an interview.
Another meeting on resolving the gas conflict will be held in Brussels on October 29, at which Russia is expected to announce whether it is satisfied with Ukraine's debt payment plan. Failure to agree on a deal by the end of October will increase the risk of interruptions in gas supplies to the EU in the winter, the American publication is confident.
Russia supplies 30 percent of the gas required by the European Union. Half of this volume passes through Ukraine. If Russia's southern neighbor itself does not have enough gas during the winter, the Financial Times writes, EU countries fear that Ukraine will siphon transit gas from pipelines heading to the West.
Until Russia demanded payment guarantees yesterday, the agreement seemed about to be signed. Ukraine and Russia have already agreed to a temporary price of $385 per thousand cubic meters of natural gas.
Ukraine also agreed to pay $3,1 billion in debt to Gazprom in two installments: $1.45 billion due by the end of October and the rest by the end of the year.
When Russia asked Kyiv Energy Minister Yuriy Prodan to provide solvency guarantees, he replied that he should discuss this issue with representatives of the European Commission and find a compromise. In turn, European Commissioner for Energy Günter Oettinger replied that he is not currently able to confirm that the EU will be able to guarantee the solvency of Kyiv.
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