Gazprom mulls gas price cut for Ukraine

June 3, 2014

Russia’s gas giant Gazprom and Ukraine’s energy company Naftogaz Ukrainy will consult with their governments a supply price of U.S.$ 350-380 per 1,000 cubic meters, a medium price between $268.5 and $485 Kiev used to pay, E.U. energy commissioner Gunther Oettinger, who mediated in the talks, said late on June 2, Prime has reported.

The two firms also agreed not to interrupt supplies and the Russian giant agreed not to switch Kiev to a prepayment system, while both countries abandoned their plans to go to international courts.

The next meeting between Russia and Ukraine with the mediation of the E.U. will take place before the next week’s end, Oettinger said, adding that Ukraine has paid its debt to Russia for the January-March deliveries.

Gazprom CEO Alexei Miller said that the next meeting will depend on how Ukraine repays its debt for the supplies in November and December at a price of $385 as well as payments for April and May gas at $500.

“Both parties have agreed that neither of them is going to file a suit to the Stockholm arbitration court,” he said.

Miller has not ruled out postponing the deadline for the June bill payment if only insignificant questions remain outstanding by June 9.

Copyright: Prime, 2014