Russian energy supplies to Kiev

Gazprom Sends $1.6Bln Gas Bill to Ukraine’s Naftogaz for June

RIA Novosti,

13 May, 2014

MOSCOW, May 13 (RIA Novosti) – Russian energy giant Gazprom has notified Ukraine’s Naftogaz that it will switch to a pre-payment scheme for gas deliveries, with the advance bill for June already prepared, Gazprom spokesman Sergei Kuprianov said Tuesday.

According to Gazprom’s gas price for deliveries to Ukraine’s Naftogaz, $485 per 1,000 cubic meters, the bill for June comes to $1.66 billion (for 3.42 billion cubic meters).

“The overall debt has reached $3.505 billion, and no one can doubt that this is a considerable and objective reason to invoke the provision figuring in the contract on the pre-payment. A preliminary bill has been sent for June, for 114 million cubic meters daily,” Kuprianov said.

Ukrainian state-run gas company Naftogaz must pay the bill by June 2, as June 1 is a Sunday, which is not a working day. Beginning June 3 the company will receive gas for Ukrainian consumers only in the volumes it has paid for in advance.

Gazprom earlier said it would stop deliveries of natural gas to Ukraine if Kiev failed to pre-pay by June 2. The company also voiced concerns that Naftogaz could fail to fulfill its commitments on gas transit, siphoning off gas destined for European consumers.

Ukraine Can Use EU Aid to Pay Off Russian Gas Debt – European Commission

RIA Novosti,

13 May, 2014

BRUSSELS, May 13 (RIA Novosti) – Ukraine will be able to use the EU’s financial assistance to pay off its debt for Russian gas, a spokesman for the European Commission on economic and monetary affairs said Tuesday.

"This is support for the Ukrainian budget with a view [to enabling Ukraine] to make the necessary payments in the energy sector," Simon O'Connor said.

Ukraine and the EU will sign an agreement on the provision of 1 billion euro in financial assistance to Kiev in Brussels on Tuesday, during a visit of the Ukrainian government.

A Ukrainian government delegation, led by Energy Minister Yuriy Prodan will also discuss gas issues with EU energy commissioner Gunther Oettinger in Brussels. The sides are expected to discuss the issues of natural gas supplies from Russia to Ukraine and its transit to EU countries.

Earlier Tuesday, Russian gas giant Gazprom sent an official notification to Ukrainian national oil and gas company Naftogaz about switching to advanced payment for gas supplies. If Ukraine fails to pay for June deliveries by June 2, Gazprom will cut off gas supplies from June 3.

Ukraine has not paid for Russian gas in two months. According to Gazprom, Ukraine’s accumulated debt for previous deliveries totals $3.5 billion. On April 1, the price of Russian gas for Ukraine rose to $485 per thousand cubic meters from $268.50, as Russia withdrew two major discounts. Ukraine refuses to recognize the new gas price, which is fully in line with the contract that the two states signed in 2009.

'Ukraine menaces Russia with gas trial, has no chances in court'

Ukraine's interim prime-minister says Kiev will put pressure on Moscow over the price through an international court. UK-based journalist Neil Clark believes Kiev doesn't stand any chance of success if it continues with such strong rhetoric.

What happened to neo-liberal “market-based” solutions?!!!!

Russia ratchets up gas pressure on Ukraine with pre-payment demand - economy

Russia's Gazprom is demanding the equivalent of 1.2 billion euros from Ukraine as pre-payment for natural gas deliveries in June.

The state-controlled energy firm said it wants the cash by June 2.

The bill ratchets up a dispute over prices that is pushing the two countries closer to another gas war that could cut supplies to Europe.

That came as the Ukrainian Prime Minister Arseny Yatseniuk urged Moscow not to use gas as a new type of weapon against Ukraine.