FRIDAY, OCTOBER 24, 2014
Links for Friday - Naked Capital with commentary from that Blog !
Ukraine’s president says gas compromise highly probable http://en.tass.ru/economy/756534
CyberBerkut says it hacks into electronic counting system, Ukraine’s CEC website http://en.tass.ru/world/756503
European Commission caps funds for Ukraine at €790 million http://en.tass.ru/economy/756283
Halya Coynash: Whose 'widespread use of cluster munitions'? #Ukraine #Russia http://www.kyivpost.com/opinion/op-ed/halya-coynash-whose-widespread-use-of-cluster-munitions-369248.html …
#EU ready to give at most $1 billion to #Kyiv, sum not enough to pay bills http://www.kyivpost.com/content/ukraine/eu-ready-to-give-at-most-1-billion-to-kyiv-sum-not-enough-to-pay-bills-369221.html …
China not to join sanctions against Russia — Chinese ForMin http://en.tass.ru/world/756250
Ceasefire reduces mortality in east of Ukraine http://en.tass.ru/world/756240
Ukraine’s complaint to WTO against Russia futile — agricultural watchdog chief http://en.tass.ru/economy/756230
MORE: Russian ruble hit new bottom reaching all-time low of 42 rubles to dollar http://bit.ly/1xgGqhB
MORE: #Putin, #Merkel discussed gas deliveries to #Ukraine during phone conversation http://bit.ly/1xgyTPS
Italian agriculture suffers serious losses amid restricted food import to Russia http://bit.ly/1rnrk6B
600 tons of illegal meat disguised as marmalade detained on Russia-Estonia border http://bit.ly/1rnrk6B
MORE: #Russia will sue #France if Paris refuses to honor #Mistral warship contract http://bit.ly/1rngxJu
Reuters: Lawmakers extend #Ukraine's access to #EU markets http://www.kyivpost.com/content/business/reuters-lawmakers-extend-ukraines-access-to-eu-markets-369182.html …
Kyiv Post. Friday, Oct. 24, 2014. Issue #43, Year #19.
Russia against new gas ‘loans’ for Ukraine - Energy Minister
Published time: October 23, 2014 09:39
Russia is refusing to agree to payment options proposed by the EU, calling them a hidden form of credit. Kiev has less than a week to find the money for Russian gas, ahead of the next round of negotiations on October 29.
Moscow won’t accept any of the payment plans proposed so far by the European Commission, Russia’s Energy Minister Aleksandr Novak said Wednesday at a National oil and gas forum in Moscow.
One of the options put forward by the European Commission is that it could advance money to Ukraine for transit of Russian gas through to March. Novak says that this would in fact be a loan to Ukraine’s Naftogaz which the company will use to pay for Russian deliveries in November and December.
“Of course we can’t accept this, because this is another Naftogaz loan and it contradicts Russia’s stance that the country had earlier voiced. The whole idea turns into Gazprom financing gas transit, that’s why we don’t accept it,” Novak said.
The other alternative proposed by Europe would mean that French company GDF Suez will become an intermediary for supplies of Russian gas to Ukraine. The company says it is ready to purchase Russian gas and then resell it to Naftogaz.
“The question is where Ukraine is going to get financial sources to buy gas from an intermediary. If they [GDF – Ed.] are ready to offer credit to Ukraine, then why don’t they give credit to Naftogaz for it to purchase gas from Gazprom?” he asked.
Such an option would mean changes to the transit terms in the 2009 contract, which Russia strongly rejects. “The contract on gas transit was signed in 2009 and is valid to 2019. The Russian Federation and Gazprom are not going to change the system and introduce any alterations,” Novak concluded.
Russia, EU and Ukraine held trilateral talks on Tuesday in Brussels. All three parties confirmed Kiev will pay $385 per 1,000 cubic meters through to the end of March. The terms of the current deliveries stipulate that Ukraine pays off the accumulated debt for November and December of 2013 which amounts to $1.45 billion.
Gazprom estimates Ukraine’s total debt at $5.2 billion from November 2013 to June 2014. Naftogaz disagrees with the figures and has taken the case to the arbitration tribunal in Stockholm, trying to have the figure reduced. A repayment of $3.1 billion has been agreed to be made by the end of the year, and was worked out using the price of $268 by Naftogaz.
“We agreed that $3.1 billion will be discharged this year. The first tranche has to be paid off before the resumption of gas shipments and the second one, in the amount of $1.65 billion, by the end of the year. The shipments will be resumed only in this case,” Novak concluded.
MORE: Ukrainian Energy Minister is optimistic about next three-way gas talks http://bit.ly/1wuAuDD
BREAKING: Moscow hopes that parliamentary polls will bring stability to Ukraine - Foreign Ministry
BREAKING: Russian observers to take part in #OSCE observer mission to Ukrainian parliamentary elections – Russian Foreign Ministry
BREAKING: Russia calls on West to influence Kiev to stop using cluster bombs which is considered a war crime