Brussels, 21/10/2014 (Agence Europe) - At the time of EUROPE going to press on Tuesday 21 October, European Commissioner for Energy Günther Oettinger and Russian and Ukrainian energy ministers - Alexander Novak and Yuriy Prodan respectively - had just started their meeting in trilateral format after bilateral meetings that had gone on all afternoon. Following a meeting between Russia's President Vladimir Putin and Ukraine's President Petro Poroshenko in Milan on 17 October - which had given rise to a preliminary political agreement on the compromise reached on 26 September - there was still hope of finalising a provisional agreement on the Russian-Ukrainian gas dispute and hope of Russia resuming supplies of gas to Ukraine until April 2015. The question remains as to knowing how Ukraine will be able to pay off part of its debt.
The compromise tabled to restore deliveries of Russian gas to Ukraine until spring 2015 (deliveries which have been suspended since mid-June) is based on Kiev's payment - in two instalments by the end of 2014 - of part of its debt to Gazrpom. An initial tranche of $2 billion should be made by the end of October and a second tranche of $1.1 billion by the end of December. The compromise also provides for Gazprom's delivery of at least 5 billion cubic metres of gas to Ukraine in the next six months, in return for Kiev's pre-payment at a price of $385 per 1,000 cubic metres. The $3.1 billion which would be paid by Ukraine corresponds to what Kiev considers to be its debt - while Gazprom is demanding $5.3 billion. Ukraine and Russia have appealed to the commercial court of arbitration in Stockholm and, according to the outcome of this procedure, Ukraine may or may not have to make up the difference on this payment which it would be committed to making under the compromise. (EH)