1ST LEAD Moscow, Kyiv mulling «common understanding» on winter gas …
Brussels (dpa) – The Russian and Ukrainian governments are reviewing
a possible deal on winter gas supplies, the European Union said
Thursday, after marathon talks in Brussels.
“Jointly prepared documents laying down a common understanding have
been prepared and are now with the respective governments in Moscow
and Kyiv for approval,” said a source at the European Commission, the
EU‘s executive.
“Trilateral consultations will continue throughout the course of
today,” added the source, who asked not to be named.
Commission President Jose Manuel Barroso believes an agreement is
“within reach,” the EU‘s executive said in a statement issued
following a series of phone conversations between Barroso and
Ukrainian President Petro Poroshenko on Wednesday.
“[Barroso] urged all sides to seize the opportunity and conclude the
negotiations in order to secure a continuous, reliable and
market-based supply of gas to Ukraine,” the commission said.
Russia has not sold gas to Ukraine since June due to a row over
billions of dollars in arrears. The EU is concerned that the showdown
will disrupt gas supplies across the continent, where the
energy-intensive winter is quickly approaching.
Large parts of Europe rely upon Russian gas transported across
Ukrainian territory.
EU Energy Commissioner Guenther Oettinger has been mediating for
months between Russian Energy Minister Alexander Novak, Ukrainian
Energy Minister Yuri Prodan and the leaders of their respective gas
companies.
The three sides held meetings in Brussels throughout the afternoon on
Wednesday and up until 4 am (0300 GMT) on Thursday, the commission
source said.
Novak told Russian media afterwards that the talks would resume late
Thursday. He said a sticking point in the negotiations has been the
inability by cash-strapped Kyiv to provide a written guarantee for
its next upfront gas payments, as demanded by Moscow.
“We were told that Ukraine is looking for the means to prepay a gas
supply of 4 billion cubic metres,” Novak was reported as saying.
“Once there is money, there will be gas.”
Alexei Miller, the head of Russia‘s Gazprom energy company, said the
commission must reach an agreement with Ukraine on providing such a
guarantee. He said there would be no further talks otherwise.
The latest offer on the table had foreseen Russia resuming gas
deliveries to Ukraine through the end of March at a cost of 385
dollars per 1,000 cubic metres. Kyiv would have to pay for supplies
in advance.
In exchange, Ukraine would have to settle 1.45 billion dollars in
arrears before the end of October and a further 1.65 billion dollars
by the end of the year.
But Kyiv also has demands of its own, wanting Russia to guarantee
that the gas price cannot later be changed.
If no breakthrough is achieved this week, Oettinger‘s role in the
energy negotiations is expected to come to an end, as a new EU
commission is due to take over the reins on Saturday.