Brussels, 28/08/2015 (Agence Europe) - When it comes to the purchase and supply of Russian gas for Ukraine, the European Commission is of the opinion that the future trilateral negotiations should take inspiration from the 2014-2015 winter package, which was concluded in October 2014 and expired in June.
“The Commission remains convinced that a follow-up to the winter 2014 package would enable all parties to find an acceptable framework for gas trade and purchase”, the Commission stated in a press release published in the evening of Thursday 27 August after a meeting between European Commission Vice-President for Energy Union Maros Sefcovic, Ukraine's Energy Minister Vladimir Demchyshyn and the CEO of Naftogaz, Andriy Kobolev.
During this meeting, the issue of Ukraine's “financing purchases” of Russian gas was addressed, a Commission spokesperson said on Friday 28 August. The Commission would like the future agreement to run until March 2016.
Under the terms of the 2014-2015 winter package, Naftogaz purchased its gas from Gazprom until March at a rate of $385 per 1,000 m3 (see EUROPE 11189). In the second quarter of 2015, this rate dropped to $247, but Gazprom is demanding a rate of $287 from the third quarter.
During the discussions that took place in the spring, the parties agreed that talks on a new agreement should focus on the following areas: - Russia possibly giving Ukraine a discount on gas deliveries; - Ukraine creating sufficient reserves (the goal is 19 billion m3) in order to ensure the transit of Russian gas through Ukrainian territory to Europe; - the Commission trying to find the best way to help Kiev financially in order to purchase the gas (see EUROPE 11348).
Sefcovic will meet Russia's Energy Minister Alexander Novak in Vienna on 11 September. If the parties come sufficiently close enough in opinion, a trilateral meeting could take place before the end of September. (Mathieu Bion)