Brussels, 29/10/2014 (Agence Europe) - At the time of EUROPE going to press on Wednesday 29 October, outgoing European Commissioner for Energy Günther Oettinger was conducting his last attempt, before the end of his mandate on 31 October, to reach a trilateral agreement with Russia and Ukraine to settle the gas dispute between Moscow and Kiev, and to restore the deliveries of Russian gas to Ukraine for winter 2014-2015.
“I hope this will be our last meeting”, Oettinger said cautiously at a press conference mid-afternoon on Wednesday at the end of a bilateral meeting with Ukraine's Minister for Energy Yuriy Prodan and the head of Ukrainian gas company Naftogaz, and before a meeting with Russia's Minister for Energy Alexander Novak and the head of Russian gas company Gazprom. At the time of EUROPE going to press, the three parties were meeting in trilateral format and were very behind schedule.
“Our objective is to reach a provisional agreement for a package for the winter which ensures the security of supply through Ukraine of Russian gas bought by the EU until the end of March 2015”, Oettinger stated, saying that several obstacles still had to be lifted - including Ukraine's settlement of its unpaid bills and its advance payment for its winter purchases.
In an interview broadcast during the morning on German television channel ZDF, Oettinger believed the chances were 50% for reaching an agreement, given Ukraine's insolvency.
At the end of the trilateral meeting on 21 October, the following elements of an agreement were no longer in dispute: - Ukraine's part-payment of its debt to Gazprom at a price of $268.5 per 1,000 cubic metres, and in two instalments before the end of 2014 (with the first tranche of $1.45 billion by the end of October, and the second tranche of $1.65 billion by the end of December); - Gazprom's delivery to Ukraine, until March 2015, of a volume of gas still to be decided but which will be paid at the rate of $385 per 1,000 cubic metres. Ukraine will not be subject to take-or-pay obligations but will have to pay for its deliveries in advance each month; - the payment of transit costs will be guaranteed by Russia. (EH)