Thursday, October 30, 2014

Ukraine / Russia Situation ( October 30 , 2014 ) - Natural Gas Situation close to resolution ? Or not solved ?


Evening Tweets....







Gas price for Ukraine in November-December will be set at $378 per 1,000 cubic meters: CEO Miller








European financial guarantees of payments for Russian gas will be stipulated in letter that EC agreed to send to Kiev: CEO








Russia not aware of origin of Kiev estimates of prices for Russian gas after March 2015, this issue has not been discussed at talks: Novak









Ukraine and EU have managed to provide financing of gas purchases from Russia and ensure uninterrupted gas transit to Europe: Prodan









Ukraine will pay off $3.1 billion to Russia as gas debt by year end, final payments will be determined by Stockholm court ruling: Oettinger








EC has not guaranteed future payments for Russian gas by Ukraine, but contributed to Kiev financing, including through IMF: Oettinger







Gazprom and Naftogaz sign contract addendum, detailing conditions of Russian gas deliveries to Ukraine through March 2015




Morning tweets.....







‘If there is something to discuss we’ll return’ Gazprom spox on exit from Brussels gas talks









BREAKING: Ukrainian government approves trilateral protocol on Russian gas deliveries during winter period - Deputy Energy Minister







 Retweeted 14 times
Protests in the streets of Kiev There's no heat for houses as the temperature dial moves to freezing







MORE: not planning to withdraw its lawsuit against Russian - PM Yatsenyuk




BREAKING: Prime Minister Yatsenyuk plans to discuss financial coverage of gas supplies to Ukraine with Merkel, Biden Thursday







BREAKING: Gas prices for in Q4 2014 is $378 per 1,000 cubic meters, Q1 2015 to be $365 - Yatsenyuk




Ukraine ready to make 1st payment of $1.45bln on delivered Russian gas very soon, 2nd payment of $1.65bln by end of year - Yatsenyuk



MORE: Final gas agreement could be reached Thursday - Novak




Itar Tass....

Ukraine ready to pay $268 per 1,000 cubic meters of supplied Russian gas — Yatsenyuk

 October 30, 14:00 UTC+3
Kiev has funds for that in the amount of $3.1 billion, says Ukraine's Prime Minister Arseniy Yatsenyuk
Ukrainian Prime Minister Arseniy Yatsenyuk

Ukrainian Prime Minister Arseniy Yatsenyuk

© EPA/ANDREW KRAVCHENKO/POOL
KIEV, October 30. /TASS/. Ukraine is ready to pay for supplied Russian natural gas at the price of $268 per 1,000 cubic metres, Ukrainian Prime Minister Arseniy Yatsenyuk said at a meeting of the Ukrainian government on Thursday.
“We are ready to pay the price of $268 for the already supplied gas,” he said, adding that Kiev had funds for that in the amount of $3.1 billion.
“We will pay $1.450 billion right after the signing of the trilateral protocol between Ukraine, Russia and the EU, and $1.650 billion more by the end of the year,” the prime minister concluded.
Earlier on Tuesday Russia's Energy Minister Alexander Novak told a government session that Russia and Ukraine have coordinated framework conditions for the renewal of gas deliveries to Ukraine in winter.
INFOGRAPHICSRussia’s and Ukraine’s  stance in gas disputeRussia’s and Ukraine’s stance in gas dispute
Russia and Ukraine strive to agree on gas price, but still without success. Infographics by TASS

Situation with gas supplies in Ukraine

Ukraine is surviving through intensifying colds of the approaching winter exclusively due to reverse-flow supplies of natural gas from Europe, Ukrainian Prime Minister Arseniy Yatsenyuk added.
“We have increased the gas reverse-flow from Slovakia to the maximum capacity and only thanks to the reverse the country survives and heats up itself,” Yatsenyuk said.
Poland has been the first country, through which Ukraine has started to pump natural gas from the European Union but Poland’s technical capacity allows supplying no more than 1.5 billion cubic meters of gas annually while about 6 billion cubic meters can be pumped from Hungary and 10 billion cubic meters from Slovakia.
Ukraine annually consumes about 40-45 billion cu m of natural gas, with more than half of this amount earlier purchased from the Russian gas monopoly Gazprom.
Russia and Ukraine continue gas talks with the EU’s mediation to resolve the gas dispute between the two ex-Soviet republics and ensure uninterrupted gas supplies to Europe in winter.
Yatsenyuk said earlier in the month he was confident that “if talks with Russia fail, gas can be replaced with additional reverse-flow supplies and heating oil.”
“We can increase reverse supplies. We’re working with European partners about the technical possibility of gas supplies from the EU,” the Ukrainian premier said.


Russia, Ukraine agree on basic terms of resuming gas supplies to Ukraine in winter

 October 30, 12:49 UTC+3
The European Commission fully agrees with Russia’s stance on the settlement of the gas dispute with Ukraine, Russian Energy Minister Alexander Novak says
© ITAR-TASS/Alexander Ryumin
INFOGRAPHICSRussia’s and Ukraine’s  stance in gas disputeRussia’s and Ukraine’s stance in gas dispute
Russia and Ukraine strive to agree on gas price, but still without success. Infographics by TASS
MOSCOW, October 30. /TASS/. Russia and Ukraine may sign documents on settling their gas dispute on Thursday, Russian Energy Minister Alexander Novak said.
Russia and Ukraine have agreed on the delivery of 4 billion cubic meters of natural gas in the next two months. Kiev is ready to pay for this volume while the European Union is ready to give payment guarantees, which should be sealed in a protocol, Novak said.
Representatives of the European Commission and Ukraine say they have found money to pay for current natural gas deliveries, the Russian energy minister said.
“The European Commission fully agrees with Russia’s position,” Novak said.
Ukraine is ready to pay for supplied Russian natural gas at the price of $268 per 1,000 cubic metres, Ukrainian Prime Minister Arseniy Yatsenyuk said at a meeting of the Ukrainian government on Thursday.
“We are ready to pay the price of $268 for the already supplied gas,” he said, adding that Kiev had funds for that in the amount of $3.1 billion.
“We will pay $1.450 billion right after the signing of the trilateral protocol between Ukraine, Russia and the EU, and $1.650 billion more by the end of the year,” the prime minister concluded.
Russia and Ukraine are set to sign an additional agreement to the existing gas contract defining the volume of natural gas deliveries and natural gas distribution, as well as two protocols on regulating payments for deliveries in case of their resumption, and debt repayment.
Russia’s position in gas talks testifies to Moscow’s desire to make its contribution to easing the situation in Ukraine, Russian Prime Minister Dmitry Medvedev said.
“We need to formulate a final position and we clearly keep all the basic approaches, which served as our initial guidance with regard to determining the contract price and the possibilities, which we can use and what we’ll not do and, of course, with regard to the need for debt repayment in full,” Medvedev said.



Not solved ?


http://www.reuters.com/article/2014/10/30/us-ukraine-crisis-gas-idUSKBN0II0XQ20141030


(Reuters) - Ukraine's efforts to unblock deliveries of Russian gas as winter sets in were deadlocked on Thursday as Moscow's negotiators were quoted demanding firmer commitments from the European Union to cover Kiev's pre-payments for energy.
EU-hosted talks were adjourned after running late into the night, Energy Minister Alexander Novak and the head of Russian gas firm Gazprom (GAZP.MM) told Russian news agencies. They would resume later in the day if Ukraine and the EU had a firm financing deal in place, Gazprom head Alexei Miller said.

Ukrainian and EU officials were not available. A spokeswoman for Energy Commissioner Guenther Oettinger issued a statement cancelling a news briefing that had been tentatively set for 8:30 a.m. (0730 GMT) in the event of an agreement.

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Ukraine is in discussions with existing creditors the EU and the IMF and German Chancellor Angela Merkel, concerned about vital Russian gas supplies to the rest of Europe has spoken of bridging finance for Kiev. But the Russian negotiators said they wanted to see a signed agreement on EU financing for Ukraine.
Novak was quoted by RIA news agency as saying he had been told in the talks that Ukraine was discussing funding for 4 billion cubic metres of gas with the European Commission and the International Monetary Fund but he had seen no guarantee of it.
"This isn't about guarantees, but only statements from the Ukrainians," he said. "We were shown no written guarantees."
He noted that Russia was only offering to open the taps once prepayments were made by Ukraine, whose economy is in crisis and which has a record of payment difficulties. "If there's money, there will be gas," Novak said.
"Everything to do with financial issues, everything to do with guarantees which the European Commission will give Ukraine, these arrangements will be set out in a bilateral protocol," Miller was quoted as saying by Itar-Tass news agency.

"If such agreements are not reached, then accordingly, there will be no negotiations and no documents will be signed. If there is an accord between the European Commission and Ukraine, then we can expect to sign all the trilateral documents."

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Ukraine's Naftogaz company has set aside $3.1 billion in a special escrow account to pay off a chunk of its debt to Gazprom, but Russia is also demanding prepayment for winter supplies before it is willing to turn the taps back on.
Kiev says it is working to raise more money from all possible sources of financing, including the European Union. The European Commission is considering Ukraine's request, made last week, for a further loan of 2 billion euros.
But Kiev also says money alone may not be enough.
"I have an impression that the Russian side doesn't want to agree," Ukrainian Finance Minister Oleksander Shlapak said on Tuesday.
Analysts said it could be very hard to come up with enough assurances to satisfy Russia, even if Gazprom, and more widely the Russian treasury, would welcome new revenues as the economy suffers from the effects of Western trade sanctions.
Ukraine at the same time is pushing for written guarantees that any agreement on price will be lasting.

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