Further Progress In Ukraine-Russia Gas Row - EU

Posted By Joseph R. Fonseca
Tuesday, May 27, 2014

Europe's Energy Commissioner said on Monday Ukraine and Russia had made further progress in a dispute over gas prices and his proposal that Ukraine to pay $2 billion of back debt by Thursday could pave the way for further talks on Friday.

Speaking after three-way talks with Russia's and Ukraine's energy ministers, Guenther Oettinger said the two governments would study his proposal that Ukraine pay Russia $2 billion by Thursday and a further $500 million by June 7.

Oettinger, acting as a mediator in the capital of his home country Germany, said if the governments agreed to the deal, further talks about the gas price from April could then be held from Friday.

"We've achieved progress but we didn't achieve a breakthrough," Oettinger told reporters at a news conference in Berlin. "I believe an agreement is possible."

But Ukraine's Energy Minister Yuri Prodan, speaking after Oettinger and Russia's Energy Minister Alexander Novak had briefed reporters and left, said there was no final an agreement and he would not confirm that Ukraine agreed to pay $2 billion on Thursday. He said the two sides have until Wednesday night to consider it.

"The payment is not in question," Prodan added. "Ukraine will pay its debts and obligations.... We would like to have a package price." He said both sides have until Wednesday to draft their position on the EU's proposal.

Russia supplies around a third of Europe's gas demand and about half of its gas imports from Russia flow through Ukraine.

Ukraine wants to change the conditions of a 2009 contract that locked Kiev into buying a set volume of gas, whether it needs it or not, at $485 per 1,000 cubic metres - the highest price paid by any client in Europe.

Moscow dropped the price to $268.50 after then-President Viktor Yanukovich turned his back on a trade and association agreement with the European Union last year, but reinstated the original price after he was ousted in February.

Ukraine insists on a price of $268.50 per 1,000 cubic meters while Russia stands by its demand for $485. Oettinger is trying to get the two sides to agree in the middle. The average gas price paid by European customers to Gazprom lies around $370.

Novak said there had been progress on Monday in Berlin.

"We're ready to continue the talks for setting future prices on Friday after we get paid," Novak said, repeating Oettinger's words that they had reached a preliminary deal in which Ukraine will pay $2 billion on Thursday and $500 million by June 7.

"The Russian side wants to have negotiations about prices only once the debts are paid," he added.

Oettinger, who is hoping to burnish his reputation as a crisis manager in his home country, said the European Commission was working to help enable Ukraine to pay its back debt to Russia. "We're helping make that possible," he said.

(Additional reporting by Markus Wacket; writing by Erik Kirschbaum, editing by David Evans)

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Major Ivorian Cocoa Buyers Boycott Local Exporters Scheme

Major cocoa buyers are boycotting a scheme in Ivory Coast aimed at guaranteeing local firms a share of the lucrative export market, arguing that these players lack

Matson Pumps $30 Million into Alaska Operations

Ocean cargo shipper Matson, Inc. said it is moving quickly to fund improvements in its new Alaska operations following its May 29 acquisition of Horizon Lines' Alaska services.

General Dynamics Tops Q2 Estimates

General Dynamics Corp, a maker of ships, tanks and business jets, reported higher-than-expected quarterly earnings and revenues on Wednesday, and sharply raised its outlook for full-year profit.

Energy

USCG Investigates Oil Slick off California Coast

The U.S. Coast Guard was investigating a large oil sheen off the California coast west of Santa Barbara on Wednesday, a spokeswoman for the agency said.   The slick,

Mexico to Postpone Deep Water Auction

Mexico, which has started to open its nationalized oil industry to additional private investment, will postpone auctions for deep-water oil exploration and production

Oregon Bridge Danglers Hope to Delay Shell's Arctic Drilling

Protestors rappelled off a bridge in Portland, Oregon on Wednesday hoping to delay Royal Dutch Shell's Arctic oil exploration this summer by blocking the return

LNG

Next Wave of FLNG Projects on the Horizon

There will be significant growth in both investment and activity in the FLNG market over the next seven years, with Douglas-Westwood (DW) forecasting total expenditure of $58.

Carnival’s Costa Brand Orders Two LNG Cruise Ships

Costa’s two new cruise ships will be the largest ever built based on guest capacity; Costa will join sister brand AIDA Cruises in building the first-ever cruise

Singapore MPA Wants LNG Bunkering Options

Singapore's Maritime Port Authority is seeking proposals on liquefied natural gas bunker supplies as it shifts away from fossil fuels towards gas while trying to

News

Two New Hybrid RTGs for Port of Shanghai

Corvus Energy informs it will provide the battery systems for an additional two hybrid solutions for new rubber-tired gantry cranes (RTGs) that will be produced

USCG Investigates Oil Slick off California Coast

The U.S. Coast Guard was investigating a large oil sheen off the California coast west of Santa Barbara on Wednesday, a spokeswoman for the agency said.   The slick,

Puget Sound Reports Container Volume Growth

Less congestion and efficient cargo movement helped international container volumes through the Puget Sound gateway improve 14 percent in June compared to June 2014, the port reported.

Consulting

MARAD Support for Hydrogen Fuel Cell R&D

The U.S. Department of Transportation’s Maritime Administration (MARAD) today announced that it is providing $500,000 to support a feasibility study for the design,

NewLead Holdings Announces Commercial Competency of MT Sofia

NewLead Holdings Ltd.announced today a review of the commercial competency of one of its bitumen tanker vessels, the MT Sofia since the vessel was delivered to NewLead's fleet.

ABB to Increase Norway’s Grid Capacity

ABB transformer technology supports Norway’s push to increase the volume of clean energy it can transport reliably over its grid using existing transmission corridors ABB,

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2562 sec (4 req/sec)