At negotiations in Berlin, the West refused to pay for Ukraine

21.10.2014 21:58
  (Moscow time)
Views: 2728
 
Policy, Story of the day, Ukraine, Economy, Energetics


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Berlin - Kyiv, October 21 (PolitNavigator, Mikhail Ryabov) -   A temporary agreement on gas supplies to Ukraine is planned to be signed next Wednesday, European Commissioner for Energy Günter Oettinger said following the results of today's negotiations.

Berlin - Kyiv, October 21 (PolitNavigator, Mikhail Ryabov) - Interim agreement on gas supplies...

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According to him, preliminary, the gas price for Ukraine will be $385 per thousand cubic meters until the end of March 2015.

The “take or pay” principle will not apply – i.e. The Ukrainian side itself determines the required volumes of purchases. However, they will be produced on an advance payment basis.

One option is that if Naftogaz cannot pay, a European gas company could purchase gas as an intermediary, Ettinger suggested. However, he emphasized that the West does not intend to take full responsibility for paying for Russian fuel and debts.

“No, I can’t confirm that,” Ettinger said.

According to him, Ukraine could carry out purchases by making offsets with Moscow. For example, the Russian Federation pays Kyiv for gas transit through Ukrainian territory. The amount that needs to be paid from September to March could be automatically offset.

Russian Energy Minister Alexander Novak clarified that Ukraine will have to pay 3,1 billion of old debts by the end of this year, and 1,451 billion should be transferred in October, before supplies are resumed.

Novak noted that Ukraine has not yet confirmed that it has money for prepayment of gas in October and November - and another $1,6 billion will be needed. “The European Commission also did not confirm the sources of funding,” the Russian minister said.

Novak noted that funds from the IMF loan or new loans from Western structures can be used to pay for gas. He expressed hope that within a week Ukraine and its EU partners will be able to provide payment guarantees.

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