Russia, the EU and Ukraine have signed an agreement on gas at $ 4.6 billion

Russia, the EU and Ukraine have signed an agreement on gas at $ 4.6 billion

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In total, up to the end of the year “Gazprom” will receive from “Naftogaz Ukraine” $ 3.1 billion in debt payments account

BRUSSELS, October 31st. Russia, the European Union (EU) and Ukraine reached an agreement on the resumption of Russian gas supplies to Ukrainian consumers, guaranteeing its transit to the EU and the partial repayment of gas debts of Kiev.

The result of two days of talks was the signing of documents worth $ 4.6 billion, said at the end of their European Energy Commissioner Guenther Oettinger.

The agreement was reached after the Ukraine and the EU agreed on the sources of payment for gas debts, and Russia received assurances that the stated funds Kiev has in stock. The absence of such guarantees are not allowed parties to agree in the previous round of negotiations on 21 October.

“The people of Europe will not be cold this winter thanks to the agreements reached” – outlined the main result of the arrangements for the European Union, European Commission President Jose Manuel Barroso. The share of “Gazprom” in European gas imports is 60%, and half of it comes through Ukrainian territory.

The agreement “will ensure a stable supply of gas to Ukraine and Europe,” commented Minister of Energy Minister Yuriy Prodan, whose task is to provide the country with fuel for the upcoming heating season.

Today is a big step is completed,” – said Russian Energy Minister Alexander Novak, noting that the finished work, which was started in April 2014 Russian President Vladimir Putin, who wrote a letter to the leaders of the European Union.

In this letter, Putin stressed that Russia no longer has to carry the burden alone support Ukraine. And the omission of the European Union in a situation of non-payment of Ukraine’s gas debt looks like an attempt to shift to Moscow Ukrainian consequences of the economic crisis, he pointed out.

“Special Fund” for the debts

According to the agreement, Ukraine will begin receiving Russian gas after more than four-month break in exchange for partial payment of debts. In the coming days, Ukraine must repay $ 1.4 billion of debt for Russian gas deliveries in November and December last year, said Novak. In total, up to the end of the year “Gazprom” will receive from “Naftogaz Ukraine” $ 3.1 billion in debt payments account, Ettinger said.

According to him, it is intended “to create a special fund that will be included $ 3.1 billion” to make payments on the debt. At the talks were agreed three sources of funds for the payment of the debt and the current gas supplies Ukraine – is the operating program of the International Monetary Fund, the current income of “Naftogaz” and the allocation of EU funds under the European aid program, said the Commissioner. Ukraine confirmed the availability of funds to pay for Russian gas supplies, has confirmed Novak.

Russia appreciates Ukraine’s debt for gas at $ 5.3 billion. Kiev part of the debt of $ 2.2 billion is still not recognized, because he believes that “Gazprom” spring selling gas “Naftogaz of Ukraine” at an inflated price.

Russia insists that the cost of gas is calculated strictly in accordance with the contract, which was signed by the parties in 2009. Identification of the dispute must bear the Stockholm arbitration. And only after that question with the remaining debt payments for gas supplies to Ukraine will be solved, said the head of the Ministry of Energy.

Winter Special

In the current negotiations, concerning the resumption of gas supplies to Ukraine only in winter, Moscow agreed to provide Kiev discount of $ 100 per 1 thousand. Cubic meters of gas to the cost, which is derived from the formula laid down in the contract. Discount will soon be formalized decision of the Russian government, said Novak.

After the discount price for Ukraine in the fourth quarter of 2014 will be $ 378 per 1 thousand. Cubic meters, while in the first quarter 2015 – $ 365. “This price is close to the market”, – said the head of the Ministry of Energy of Ukraine.

Until the end of the year, “Naftogaz Ukraine” plans to buy from “Gazprom” of 4 billion cubic meters of Russian gas, said Prodan. The volume of prepayment for gas deliveries in November should reach $ 770 million (2 billion cubic meters of payment), calculated at the Russian Ministry of Energy. And for all shipments Ukrainian payments will exceed $ 1.5 billion.

“Mode” take or pay “will not work for Ukraine from November 2014 until the end of March 2015, Novak said, noting that the issue of the continuation of supplies during the summer in the negotiations had not been discussed.

Russian gas supplies to Ukraine will begin as soon as the first tranche will be paid, told them of the arrangements Prodan.

“Big backlog”

The agreement signed today has created a “big backlog to avoid transit crisis this winter and did not allow Ukraine to freeze”, described the agreement reached in Brussels, Deputy Head of National Energy Security Fund (NESF) Alex Grivach.

“This is a good option,” and “Gazprom” said analyst Andrey Polishchuk Raiffeisenbank. According to him, the agreement implemented in terms of the Russian company. “That is something that” Gazprom “initially claimed he actually received, though not fully.

The company will receive additional income through the sale of additional gas and ensure the transit of Russian gas to Europe “- said Polishchuk, noting that, although no return debts in full,” big money “that will provide income minority shareholders and the state.

But the agreements have risks, warns Grivach. “There is one thing: the issue of granting Ukraine the aid no specifics, he actually hung in the air,” – said the expert. He notes that the situation with the payment of the first tranche of Ukraine’s gas debt does not cause problems, but “when the time of payment of the second tranche of the Ukrainian debt, the money can not be.” In this case “situation again may be in crisis,” warns deputy head NESF.

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