EU asks Ukraine to pay half of April-May debt amid price dispute

May 29, 2014

The EU has proposed Ukraine to repay half of its debt for gas supplies in April-May until Moscow and Kiev agree upon a new gas price, EU Commissioner for Energy Gunther Oettinger said on May 28 after a round of the trilateral Russia-Ukraine-EU consultations on gas issues, ITAR-TASS has reported.

Russia and Ukraine have officially settled all disagreements over the price for gas supplied between November 2013 and March, when it stood at $268 per 1,000 billion cubic meters, Oettinger said. However, Kiev still insists that the price for April-May, after Gazprom cancelled all discounts for the country and set the price at $500, is unfair.

Ukraine may repay at least $2.5 billion of its $3.5 billion debt for Gazprom gas supplies, Russia’s Energy Minister Alexander Novak said late Monday on the sidelines of the gas talks, while Ukraine’s Energy Minister Yuriy Prodan said that Ukraine will agree to repay the debt only after Gazprom sets the price “close to the market price”.

The European Commission’s estimate of the Ukraine’s gas debt stands at about $4 billion, Oettinger said.

Copyright: ITAR-TASS, 2014