Brussels, 30/05/2014 (Agence Europe) - In Berlin on Friday 30 May, Ukraine and Russia made progress towards resolving their gas conflict. The talks will resume in Brussels on Monday 3 June, again under the aegis of the European energy commissioner. Moscow is threatening to turn off the gas tap to Kiev on Tuesday.
The energy ministers of Russia, Alexander Novak, and Ukraine, Yuri Prodan, and the bosses of Gazprom and Naftogaz met in Berlin on Friday 30 May, under the aegis of European Commissioner Günther Oettinger. Following the meeting, Oettinger said: “We have not yet reached a breakthrough nor a final package but we made further headway”. The parties' ambition is to reach an agreement by Tuesday 3 June, the date on which Moscow is threatening to cut off gas to Kiev unless Ukraine pays its arrears of more than $3.5 billion. Russian gas giant Gazprom is also insisting on advance payment for June supplies. The commissioner said that the EU, Ukraine and Russia had discussed the controversial invoicing period from November to May. Naftogaz said that the sum of $786 million had been transferred to Gazprom. This amount covers the period from February to March 2014, which corresponds to a price of $268 per 1000 m³ and “the volume is not contested”, the commissioner said. The money should be in Gazprom's account on Monday, Oettinger and Novak stressed.
Once the payment has been received, a solution will be sought for the invoices of November-December 2013 and April-May 2014. Similarly, gas prices for future deliveries will be negotiated, as the Russians are calling for a price (US$485 per 1000 m³) which the Ukrainians are refusing to pay.
Around a quarter of all gas used by the European countries transits through Ukraine and the prospect of an interruption in supplies to Ukraine is a cause of concern for the European Commission, which is attempting to play the role of mediator. After a mild winter, gas stocks are comfortable for the time being. In the event of a total shut-off of Russian supplies to the EU at the most critical point in the winter, January, almost the whole of the EU, with the exception of the Iberian peninsular and southern France, would be directly affected. (MB/LC)