Russia Ukraine gas talks break down: July 2015

Russian gas purchases have been suspended by Ukraine after a breakdown in talks aimed at keeping supplies running for three to six months.

The Ukrainian state energy company, Naftogaz, said it would continue transporting Russian gas supplies to other European customers.

It will be the second time in less than a year that Russian fuel supplies have stopped running to Ukraine.

Representatives from Moscow, Kiev and the European Commission were meeting in Vienna to discuss gas supplies to Ukraine on the day the current 'winter package' deal expires.

A statement from Naftogaz said: "Since the additional agreement between Naftogaz and Gazprom is expiring on 30 June, and the terms of further Russian gas deliveries to Ukraine were not agreed at today's trilateral talks in Vienna, Naftogaz is suspending purchases from the Russian company."

Ukraine consumes about 50 billion m³/yr of gas, producing about 20 billion m³/yr but importing the rest.

Representatives from Moscow, Kiev and the European Commission were meeting in Vienna to discuss gas supplies to Ukraine on the day the current 'winter package' deal expires.

Ukraine comment

Ukraine's Energy and Coal Minister Vladimir Demchishin said Ukraine would buy gas from other sources and that the next round of talks with Russia would be in September.

"We definitely do not want to prolong this until the start of the heating season, we do not plan to drag this out until October," he said.

The European Commission, which has mediated the gas pricing dispute between Moscow and Kiev for more than a year, said it would help prepare further negotiations.

Edited from various sources by Elizabeth Corner

Sources: Reuters, BBC

Read the article online at: https://www.worldpipelines.com/business-news/01072015/russia-ukraine-gas-talks-break-down-july-2015/