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FX.co ★ European Commission urges Ukraine to pay gas debt to Russia

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Forex Humor:::2014-05-28T14:54:00

European Commission urges Ukraine to pay gas debt to Russia

EU Energy Commissioner Günther Oettinger urged Ukraine to pay back the debt it owes to Russia for gas deliveries. The EU and International Monetary Fund would help Ukraine pay its debt, Itar-Tass quoted Oettinger as saying.
“There can be various disputes with Russia, but the gas bills are on the table and they must be paid”, he said.
There will be the second round of negotiations on the gas issue between Russia, Ukraine and the European Commission in Berlin on Monday. Russia will be represented by Energy Minister Alexander Novak, Ukraine – by Minister of Energy and Coal Industry, Yuriy Prodan, while Günther Oettinger will be from the EC side.
On May 20, Prime Minister of Ukraine Yatsenyuk said the country is ready to pay the gas debt provided that the price is at $268 per 1,000 cubic meters. In case the agreement is not reached by the end of May, Kiev pledged to appeal to international arbitration. The discount price of $268 per one thousand cubic meters of gas has been in effect until April 1, 2014. It was set as a result of two discounts gained by Kiev from Russia in 2010 and 2013. After the discounts were annulled, the price soared to $485 per 1,000 cubic meters. Previously, Gazprom representative Sergei Kupriyanov said the Ukrainian side owes the company $3.5 billion. Russia’s gas giant switched to advance payment system in supplies to Ukraine, putting Naftogaz June bill at $1.66 billion.

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