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EU, IMF to Finance Expenses on Trilateral Gas Deal
Energy

EU, IMF to Finance Expenses on Trilateral Gas Deal

The European Union and the International Monetary Fund (IMF) will “finance the most part” of expenses connected with implementation of the three-party gas deal involving Russia, Ukraine and the EU on supplies of Russian natural gas to Ukraine in the upcoming winter, the head of Ukraine’s national oil and gas company Naftogaz said.
“The EU and IMF will finance most of the agreement,” ITAR-TASS quoted Andrey Kobolev as saying.
At their latest two-day gas talks on October 29-30, Russia, the EU and Ukraine agreed on resumption of Russian gas supplies to Ukrainian consumers, on guarantees of gas transit to the EU and partial repayment of Kiev’s gas debts.
“The final price for gas will be determined by the Stockholm arbitration court. After that, it will be clear who owes whom and how much,” Kobolev said, apparently referring to a lawsuit filed by Naftogaz to the arbitration court regarding the price for Russian gas.
Russian gas supplies to Ukraine for its own needs were halted, but transit volumes were reportedly passing via Ukraine to Europe in line with the schedule.
During the latest talks, Moscow agreed to grant Kiev a discount of $100 for 1,000 cubic meters of gas to the contract formula-stipulated price.
With the discount, the Russian gas price for Ukraine in the fourth quarter of 2014 will total $378 per 1,000 cubic meters, and $365 per 1,000 cu m in the first quarter of 2015. “This price is close to the market one,” Ukrainian Energy Minister Yury Prodan said.
The Russian gas supplies to Ukraine will start immediately after the first tranche is paid, Prodan said describing the reached agreements.
He said Ukraine had ultimately won the gas dispute with Russia. “The final victory will come when we minimize consumption of Russian gas,” he noted.
Earlier on Friday, Kobolev said that Naftogaz and Gazprom would begin negotiating the gas price in the summer period in the coming spring and the “winter” price - in the summer. “We are planning talks on the “summer” price in the spring of the coming year, and the “winter” price will change in the summer,” Kobolev said. “The current price is not merely temporary, it is intermediate. The Stockholm court of arbitration will revise it.”
He reminded that agreements on terms of Russian gas supplies to Ukraine that had been reached on October 30 in Brussels were applicable to the period from November 2014 to March 31, 2015. Bearing in mind that a ruling of the Stockholm court of arbitration can be expected by the end of 2015, the sides will have to meet for another round of negotiations in the spring.
Bearing in mind that a ruling of the Stockholm court of arbitration can be expected by the end of 2015, the sides will have to meet for another round of negotiations in the spring.

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