Sat, Mar 07, 2015 - Page 6 News List

Russia receives US$15m gas payment from Ukraine, supply cut-off averted

Reuters, MOSCOW

Russian gas exporter Gazprom said on Thursday it had received a US$15 million prepayment from Ukrainian state energy firm Naftogaz, averting a possible cut in supply, at least for a few days.

The money is enough to cover 45.6 million cubic meters of gas, or about five days’ supply at current rates of delivery, Gazprom said by e-mail.

Gazprom had warned that supply to Kiev could be cut off as soon as yesterday if no payment was made.

Any possible cuts in gas supplies to Ukraine could have a knock-on effect for the EU, where Russia meets one third of the fuel demand. About 40 percent of Russian gas to the EU goes via Ukraine.

The two former Soviet republics have been engaged in a spat over Russian gas pricing, debts and other key terms. Both have lodged their appeals with the Stockholm arbitration tribunal, which is not expected to issue a ruling before next year.

Russia puts Ukraine’s debt for gas supplies at US$2.4 billion.

The gas spat has been at the heart of the wider dispute between Russia and Ukraine.

Early last year, pro-Moscow president Viktor Yanukovich fled from Kiev following fierce street protests after he reneged on a promise to forge tighter ties with Europe, choosing closer cooperation with Russia instead and securing much cheaper gas supplies.

After his abrupt departure, Russia annexed Ukraine’s Crimea peninsula in March last year, while a pro-Moscow insurgency erupted in eastern Ukraine, where about 6,000 people have since been killed.

Russian President Vladimir Putin said on Wednesday that he did not want a repeat of pay disputes that have seen Russia cut off supply to Ukraine three times in the past decade, leaving many European states without gas in the middle of winter.

Once Gazprom’s largest export market, Ukraine has reduced its reliance on direct gas imports from Russia in recent years.

Russia and Ukraine have agreed to discuss a new gas deal before a current temporary pact expires at the end of this month.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top