Updated 15:37 p.m. Moscow time
MOSCOW, September 16 (RIA Novosti) – Reliable Russian gas deliveries to Europe are possible only on the condition that Ukraine’s state-run gas company observes transit agreements, Russian energy giant Gazprom said Tuesday.
Gazprom board of directors discussed future relations with its Ukrainian partner at a meeting Tuesday. The Russian company had to switch to advance payment scheme over Ukraine’s outstanding gas debt of $5.3 billion.
“Special attention was paid to Russian gas deliveries to European consumers via Ukraine during the forthcoming winter season. Participants of the meeting stressed that the reliability of these supplies can be ensured only on the condition that Naftogaz of Ukraine strictly observes its transit contract,” the statement reads. “The board of directors was also advised to take measures to minimize the risks of disruption of supplies to European consumers during the 2014-2015 winter season.”
Gazprom noted that the gas debt is the principal cornerstone between Naftogaz and Gazprom.
“Relationship perspectives between the companies in this field are completely dependent on debt repayment,” the statement said.
Russia, Ukraine and the European Union have been in talks on gas issues since April but have reached no breakthrough results so far. Kiev insists on a dramatic reduction in prices for Russian gas and refuses to clear its debt.
Russia has proposed a temporary price of $385 per thousand cubic meters for the period of consideration of the mutual claims of Gazprom and Naftogaz. For its part, Kiev proposed two optional prices: $300 per thousand cubic meters in summer and $380 in winter; or the price should be linked to the European spot market.
Within six months, Ukraine plans to sign new agreements with the European Union on the transit of Russian gas and move the EU gas receiving point to the eastern border of Ukraine. Ukraine is a transit country for Russian gas. Around half of the Russian gas imported to the European Union in 2013 crossed Ukraine, which amounts to approximately 15 percent of European consumption, according to the International Energy Agency.
