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Image header Agence Europe
Europe Daily Bulletin No. 10774
Contents Publication in full By article 23 / 32
SECTORAL POLICIES / (ae) energy

Russia/Ukraine, EU remains confident about tackling possible new dispute

Brussels, 29/01/2013 (Agence Europe) - The Commission is keeping its cool despite the possibility of a new gas conflict between Russia and the Ukraine breaking out. The possible new conflict emerged after the announcement of a joint undertaking between Ukraine and the Shell energy company in a shale gas field in the Donetsk region.

On Monday 28 January, in response to rumours about another spat developing between Russia and Ukraine, Marlene Holzner, the spokeswoman for the Commissioner for energy, Günther Oettinger, informed the media that, “we expect that the two parties will guarantee there are uninterrupted gas shipments to the EU". The possibility of a new dispute emerged after the Russian gas company, Gazprom, sent the Ukraine an enormous gas bill for gas it had ordered in long-term contracts but which it had not yet consumed.

Similarly to 2009, Ukraine would like to obtain a cut in the prices it is paying for Russian gas. Following the breakdown of negotiations at the end of 2012 between Kiev and Moscow, which links the question of price reductions in Russian gas to Russian participation in the Ukrainian gas pipeline network, the Russian gas company, Gazprom, sent the Ukrainian energy company, Naftogaz, a bill for €5.2 billion, which the country had to pay in a “take-or-pay” long-term contract. According to the Kyiv Post, Ukraine purchased 32.9 billion m3 of Russian gas in 2012 but had to import 42 billion m3 of gas under the terms of the clause.

The Russian initiative is also identified by several areas of the media as a reprisal against Ukraine's announcement of the forthcoming agreement with the Royal Dutch Shell energy company to develop shale gas in the Donetsk region.

The Commission has said that it is following developments involving a possible dispute closely and that it involves two different questions. On Monday, Ms Holzner provided assurances that, “no one is talking of a crisis”. Commissioner Oettinger will tackle these questions on 30 January with the Ukrainian foreign minister, Leonid Kozhara, during an EU/Ukraine summit proprietary meeting on 25 February. Subjects such as the Energy Community and gas system modernisation will also be at the centre of this work. (EH/trans/fl)

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