Ukraine and Russia Tentatively Agree on Interim Gas Deal
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  • Sibir_RUS

    According to the Russian Energy Ministry, the Russian and Ukrainian leaders reached a preliminary agreement on Kiev’s payment of its gas debt to Russia during talks at the Asia-Europe Meeting (ASEM) forum in Milan last week. Ukraine is to pay $1.45 billion of the debt in October and another $1.65 billion by the end of 2014. The parties also agreed on the temporary price of $385 per 1,000 cubic meters for the winter season.
    In addition, the European Commission should help Ukraine find $1.6 billion by the end of the year as a bridge loan or as a guarantee of the top rank financial institutions. Ukraine is now facing the forthcoming winter with low natural gas reserves. In June, Gazprom switched Kiev to a prepayment system for gas supplies in light of its massive gas debt, in excess of $5 billion. The next round of trilateral gas talks between Russia, Ukraine and the European Union is scheduled for October 21.

  • Sibir_RUS

    As far as I understand, Ukraine will get as much gas as make an advance payment after repayment of the first tranche of the debt. And at the end of the year Russia will expect repayment of the second tranche of the debt.
    EU leaders artificially limit the capacity of the gas flows that bypass Ukraine, hoping to put pressure on Russia. These capacities can be loaded at 100% – this is useful to know to simple European consumers, who far from politic.

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