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Russia likely to start Ukraine gas supply

MOSCOW, November 1, 2014

Russia could resume natural gas deliveries to Ukraine as soon as next week if Kiev pays $2.2 billion in debt and pre-payments, gas exporter Gazprom said, under a deal that also safeguards winter deliveries to Europe.

Moscow, Kiev and the European Union reached an agreement on Thursday over the gas supplies despite tensions over a pro-Russian separatist rebellion in east Ukraine.

Gazprom cut off Ukraine in June amid a bitter dispute over unpaid bills and pricing for the former Soviet republic, which is seeking closer ties with the West.

Chief executive Alexei Miller said Gazprom would restart the flow of gas within two days of Kiev covering part of its debt and pre-paying for deliveries in November.

'Everything depends on when Ukraine makes this payment. We understand this can happen by the end of next week.'

The Kremlin welcomed the deal as 'an important step in the context of ensuring further uninterrupted gas transit to Europe'.

The EU receives about a third of its gas from Russia and about half of that is piped across Ukraine.

Ukraine Prime Minister Arseny Yatseniuk said he was determined to ensure safe transit to the EU, a crucial partner for Kiev in dealing with Russia over the rebellion in the east and a creditor of Ukraine's bankrupt economy.

'Ukraine will safeguard the transit and ... won't give Russia a chance to blackmail Ukraine and Europe,' Yatseniuk said.

Thursday's agreement covers November through next March and calls for Ukraine to pay $1.45 billion. Miller put the pre-payment portion of that at $760 million.-Reuters
 




Tags: Russia | Ukraine | gas supply |

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