Russia Today.....
EU: No guarantees for Russia if Ukraine fails to settle gas debt
The EU won’t provide any new funds for Ukraine to pay off its gas debt to Russia, and Moscow has no guarantees should Kiev use agreed funding elsewhere, said the EU Energy Commissioner’s spokeswoman Marlene Holzner.
The European Commission is allocating €760 million ($954 million) of financial aid to Ukraine earlier than scheduled to help it pay for gas deliveries, said Mrs. Holzner on Friday, adding some light on the agreements reached in Brussels, TASS informs.
She explained that the EU isn't proposing to step in and pay if the Kiev government can't.
"The EU is not paying new money or additional money to help Ukraine pay its gas bills,” she said."And the EU is not giving any guarantee to Russia in case Ukraine says it cannot order an extra amount of gas or it cannot pay."
However, in case Russia breaches the price terms agreed in Brussels, the European Commission will interfere, according to the letter sent to Ukraine on Friday.
"The results of the negotiations in Brussels were recorded in the following documents...a letter from the President of the European Commission, Jose Manuel Barroso, to the President of Ukraine, Petro Poroshenko, in which the head of the EC secured guarantees of the European Commission to Ukraine regarding financial support in case Russia doesn’t fulfill its obligations on gas prices, as well as the willingness of the EC to stimulate reverse-flow deliveries of gas to Ukraine from the EU Member States,” RIA quotes from the statement.
On Friday, Ukrainian Prime Minister Arseniy Yatsenyuk instructed the country’s finance ministry, National Bank of Ukraine and Naftogaz to start paying off the gas debt to Russia. This applies to both paying the debt for Russian gas and prepayment for new supplies, which must be provided before the end of 2014, RIA reports.
Russia says it hasn't seen any specific documents confirming Kiev has funds for prepayment.
“…but officials confirmed that the funds will be found," Russian Energy Minister Aleksandr Novak told Rossiya 24 TV channel after trilateral talks on October 30.
He explained that the money is expected to come from international financial institutions, the European Union and Naftogaz’s own funds. "Ukraine has enough funds to pay off a $3.1 billion debt,"the minister added.
Gazprom head Aleksey Miller also said it was difficult to answer the question of where Ukraine was going to take the money from.
"Ukraine has assumed guarantees and put its signature on the documents also guaranteed by the European Commission,” Miller told Rossiya 24.
Aleksey Grivach, deputy head of the Russian National Energy Security Fund, said in an interview with TASS that the agreements have certain risks.
"The issue of providing assistance to Ukraine hasn’t been fleshed out, it remains hanging in the air,”Grivach said. He noted that the scheme of paying the first tranche of debt shouldn’t cause problems, but "when the time of paying the second tranche comes, there can be no money.” Grivach warned it could end up in another crisis.
Russia, Ukraine and the EU agreed four basic sources of financing for Ukraine to repay its gas debt, outgoing EU Energy Commissioner Gunther Oettinger said after the three-party gas talks in Brussels on Thursday.
"First, there is an operating program of the IMF. The Fund provides money to cover the country’s general needs, and then it can be used to pay bills for gas,” Oettinger said.
Secondly, the EC is planning to "create a special fund of $3.1 billion to pay off the debt to Gazprom,”the commissioner said.
The third option means Naftogaz could use its revenues, as it is a commercial company.
Finally, the EU "will continue funding Ukraine in the framework of European aid program."
Russia, Ukraine and the European Commission signed a legally binding tripartite agreement, fixing the winter gas plan. The plan suggests resuming gas supplies from Russia to Ukraine and ensuring uninterrupted transit to Europe during the winter. Ukraine’s has to repay $3.1 billion of its $4.5 billion debt by the end of the year, and purchase from Gazprom additional gas on a prepay basis.
Anti War.....
Ukraine Militias Warn They’ll Launch Coup in Six Months
There Won't Be a Third Maidan, Leaders Warn
by Jason Ditz, October 31, 2014
The February Maidan revolution in Ukraine saw a pro-Russian government replaced by a pro-EU one, with the protests overwhelmingly led by far-right ultranationalist factions. Since then, those factions have served as volunteer paramilitaries for the Ukrainian government in fights against the ethnic Russian east.
Their far-right agenda hasn’t gone anywhere, however, and their leaders are warning in the wake of the most recent election that they’re not going to wait long for the new government to start implementing their demands.
“We’re going to give them half a year to show the country has somehow changed,” insisted Yuriy Bereza, the leader of the Dnipro-1 militia. Another leader of that militia, Vitaly Feshchenko, warned ominously that “there won’t be a third Maidan if that happens. There’ll be a military takeover.”
Given the Ukrainian military’s serious struggles with the comparatively small eastern rebellion, and their terrible morale problems, it’s hard to envision them putting up a serious fight if the Euromaidan revolutionaries come out in force with an eye on installing a more fascist government.
If they follow through on the threat, it could be another major game-changer for Ukraine, which has been a ship adrift in recent years, torn between being a de facto vassal of Russia or the West. The ultranationalists would clearly be hostile to Russia first and foremost, but would probably not be much friendlier to the EU in the long run.
Breakaway East Ukraine Prepares for First Elections
Will Elect First Parliament of Donetsk People's Republic
by Jason Ditz, October 31, 2014
The election in the rest of Ukraine was loudly cheered by the international community, but this weekend’s vote, in the breakaway eastern oblasts of Donetsk and Luhansk, is being condemned by most of the same people.
The election will create the first parliament of the Donetsk People’s Republic, and will assemble a prime ministerial form of government. The republic will serve as the de facto autonomous region, and also the potential government if they secede outright.
Recognition of the election seems to be along the same lines as recognition of the rebels themselves, with Russia promising to accept the results and the US and EU outraged both at the vote and at Russia’s recognition.
The Donetsk People’s Republic formed after the protesters in western Ukraine ousted the pro-Russia government, and the new government banned the Russian language, ubiquitous among ethnic Russian easterners.
The war that followed has mostly stalled, and negotiations for a settlement center around granting the easterners some measure of self-rule, along with the restoration of Russian as an official language.
Tweets.....
Moscow considers elections in eastern Ukraine valid - Russian foreign ministry http://en.tass.ru/russia/757910
White House condemns elections in self-proclaimed Donetsk, Lugansk republics http://en.tass.ru/world/757929
EU not to recognize elections in Donetsk, Lugansk republics - EU foreign policy chief http://en.tass.ru/world/757918
Donetsk People's Republic PM Zakharchenko: we are ready to talk with everyone who's ready to hear us
More than 1 mln participated in #Donetsk People's Republic elections: Central Elections Commission
#DPR, LPR elections stand in way of peace in #Ukraine: EU Foreign Policy Chief http://bit.ly/1t3yRqB
Finland’s food export to Russia in August down by 60% due to sanctions http://en.tass.ru/economy/757784
EU, IMF to finance most part of expenses on Ukraine-EU-Russia gas deal - Naftogaz http://en.tass.ru/economy/757775
Russia’s emergencies ministry ends another humanitarian mission to eastern Ukraine http://en.tass.ru/russia/757770
Yatsenyuk, Poroshenko parties hold lead in #Ukraine parliamentary elections - 99.8% of ballots http://bit.ly/10HhFS5
'EU to pay for the whole mess in #Ukraine’ - Wall Street analyst Michael Hudson http://on.rt.com/kfjb7y
Authorities in Donetsk, Luhansk republics alerted to plots to disrupt Sunday’s elections http://bit.ly/1E94wzr
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