EU Wants Ukraine and Russia to Sign Interim Gas Agreement
The European Commission (EC) will propose that Russia and Ukraine sign an interim gas agreement in Berlin as a step towards resolving their long-standing row over gas prices, Energy Commissioner Guenther Oettinger said on Tuesday.
Russian, Ukrainian and EC officials are meeting on Sept. 26, Censor.NET reports about this, citing Reuters.
The Ukraine's military, reporting progress on a ceasefire called by President Petro Poroshenko, said on Tuesday all firing stopped overnight in a conflict with pro-Russian separatists that has killed more than 3,000 people and sent relations between the two countries to an all-time low.
Read also: Russian Energy Minister: Russia-Ukraine-EU Gas Talks Preliminarily Agreed for September 26
Oettinger said the gas agreement should fix an interim price for a specified amount of gas to be shipped to Ukraine. "The most pragmatic way would be to have an interim contract for some billion cubic metres of gas, delivered by Gazprom to (Ukrainian state gas company) Naftogaz, to have an interim price," he told a news conference. "Our proposal is to realize an interim solution to avoid problems with supply for winter season up to April next year."
Read also: Gazprom Cuts Gas Supply and Unable to Meet Rising Gas Demand from Europe for Now
Ukraine was paying about $500 per 1,000 cubic metres, the highest in Europe, until June when Russia's Gazprom cut gas supplies to former Soviet republic. Naftogaz has filed a lawsuit at the international arbitration court in Stockholm to establish a "fair and market price" for natural gas supplies from Gazprom.
Read also: Poland Resumed Reverse Gas Flow to Ukraine.
Ukrainian Energy Minister Yurii Prodan, who appeared with Oettinger at the news conference on Tuesday, said Kyiv would support the EC's proposal. "We have to determine an interim price which must be market price and we are ready to work with this price until the Stockholm arbitration court adopts the final decision," he said.
Read also: Shortage of Gas for Heating Season in Ukraine Is 5 Billion Cubic Meters
Ukraine said last month it was prepared to pay an interim compromise price for Russian gas but criticised the Russian gas giant for being unwilling to negotiate. Ukrainian energy officials say Kyiv is ready to pay a compromise price of $326 per 1,000 cubic metres of Russian gas for an 18-month period to allow time to end the pricing dispute.