Gas talks: EU discusses winter supplies to Europe and Ukraine

During gas talks, which took place on 21 October in Brussels, Vice-President Günther H. Oettinger built on his Berlin proposals and presented ways to secure gas supplies to Europe and the Ukraine during the winter season. "We made another step towards a possible solution and are close to an agreement on important elements. Others still need to be addressed, such as the financial gap," Oettinger stated.

The following issues are undisputed:

• Debts: Ukraine would settle its debts based on a preliminary price of $ 268.5/1000 m³ by making payments in two tranches: $ 1.45 billion by the end of October and $ 1.65 billion by the end of the year.
• New gas: Ukraine will pay $ 385/1000 m³ for gas to be delivered this winter without being subject to take-or-pay obligations. The exact volume has not been agreed yet. Russia will deliver the gas following advanced, monthly payments by Ukraine.
• Transit fees: Russia guarantees the payment of the transit fees.

A new round of talks is set to take place on 29 October 2014 in Brussels. Until then, the EU and Ukraine will explore ways how to close the financial gap. A winter package is necessary as both Ukraine and Russia have referred the dispute to the international arbitration court in Stockholm and a final decision on the price and the debt is not expected until next year.

Adapted from press release by Rosalie Starling

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