Brussels, 16/06/2014 (Agence Europe) - With negotiations between Russia and Ukraine, under the mediation of the EU, to resolve the issue of the Ukrainian debt to Gazprom and the security of supplies of Russian gas to Ukraine having broken down the day before, the EU was on the alert, on Monday 16 June.
In order to ensure the security of supplies of Russian gas to the EU, the Commission called on Ukraine to buy enough gas to increase its gas reserves from 13.5 to 20 billion cubic metres before the end of the year, the spokesperson to Energy Commissioner Günther Oettinger said at midday.
On Friday, the Council's gas coordination group is to meet to assess the EU's capacity to withstand an interruption to supplies transiting via Ukraine, if Russia decided to switch off the gas tap to that country.
Earlier in the day, the Russian gas company Gazprom decided to make its gas supplies to Ukraine conditional on a pre-payment system, in view of Kiev's failure to settle its debt by the final deadline, which was extended until 16 June pending a trilateral agreement.
The Russians and Ukrainians did indeed fail to agree this weekend on the proposed compromise put forward by Commissioner Oettinger, based on Ukraine paying $1 billion on Monday, followed by the balance of its debt in six instalments up to the end of the year. This compromise is also based on a price of $385 per 1000 m³ of Russian gas for winter purchases and a price of just over $300 for summer purchases.
Ukraine agreed to the compromise, but the Russian side rejected it and insisted on the immediate payment of $1.9 billion and a single purchase price of $385 per 1000 m³. Gazprom puts Ukraine's gas debt at $4.45 billion: $1.45 billion for November and December 2013 and $3 billion for its purchases in April and May 2014. On Monday, Gazprom also announced that it was taking Ukraine to the international court of arbitration of Stockholm over its gas debt. Kiev replied by announcing that it had brought a procedure before the same court to rule over the price. (EH)