Tuesday, October 21, 2014

Gas talks: Negotiations to be continued next week. Ukraine would settle its debts based on a preliminary price of $268,5/ 1000m3 (Günther H. Oettinger)

From the Official Website of the European Commission, Statement, Brussels, 21 October 2014:

"At today's gas talks in Brussels, Vice-President Günther H. Oettinger, built on his Berlin proposals and presented ways to secure gas supplies to Europe and the Ukraine during the winter season.


Vice-President Günther H. Oettinger said: "We made another step towards a possible solution and are close to an agreement on important elements. Others still need to be addressed, such as the financial gap."

The following cornerstones are undisputed:

  1. Debts: Ukraine would settle its debts based on a preliminary price of $268,5/ 1000m3 by making payments in two tranches: 1,45 billion $ by the end of October and 1,65 billion $ by the end of the year.

  1. New gas: Ukraine will pay $385/ 1000m3 for gas to be delivered this winter without being subject to take-or-pay obligations. The exact volume has not been agreed yet. Russia will deliver the gas following advanced, monthly payments by Ukraine.

  1. Transit fees: Russia guarantees the payment of the transit fees.

A new round of talks is envisaged for next week, 29 October 2014 in Brussels. Until then, the EU and Ukraine will explore ways how to close the financial gap.

A winter package is necessary as both Ukraine and Russia have referred the dispute to the international arbitration court in Stockholm and a final decision on the price and the debt is only expected next year."
http://europa.eu/rapid/press-release_STATEMENT-14-331_en.htm?locale=en
21/10/14
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1 comment:

  1. Novak: Russia does not see EC willingness to help find source of financing for Kiev’s debt...

    Russia does not see European Commission’s willingness to help find a source of financing for Ukraine’s [national energy company] Naftogaz to settle Ukraine's gas debt, Russian Energy Minister Alexander Novak told Rossiya 24 television.

    “We have offered our European colleagues to look into possibilities of the European Bank for Reconstruction and Development, the European Investment Bank, the International Monetary Fund and other financial institutions. Resources do exist, but we don’t see any willingness to work so far,” the minister said.

    “Taking part in negotiations on our part are our colleagues, the Ministry for Economic Development, the Finance Ministry, that clearly understand these issues,” he said. “Only representatives from the EU Energy Commission participate on the part of the European Commission,” Novak added. He said possibilities of the European Commission were not being used in full as to search for financial resources...................http://en.itar-tass.com/economy/755699
    22/10/14

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