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Page added on October 30, 2014

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Russia-Ukraine Agree Terms On Gas-Supply Through March

Public Policy

Good news for the cold-showering, snow-covered Ukrainians… Russia has reached an interim agreement to supply natural gas to Ukraine through March according to Bloomberg. Of course, this will be paid for by more IMF loans (thank you US Taxpayer), pushing Ukraine further into debt and more dependent upon the West.

  • *RUSSIA CONFIRMS GAS SUPPLY RESUMPTION TERMS AGREED WITH UKRAINE
  • *GAZPROM, NAFTOGAZ CEOS SIGN AMENDMENT TO CONTRACT
  • *RUSSIA, UKRAINE, EU AGREEMENT TO COVER DELIVERY THROUGH MARCH

Terms…

  • *OETTINGER: RUSSIA TO CHARGE UKRAINE $385/KCM THROUGH MARCH
  • *UKRAINE READY TO IMMEDIATELY PAY $1.45B OF GAS DEBT: OETTINGER
  • *NAFTOGAZ TO PAY $1.6B AS 2ND GAS DEBT INSTALLMENT BY YEAR-END

Paid for by US taxpayers…

  • *UKRAINE TO USE EU, IMF AID TO PAY FOR RUSSIAN GAS: OETTINGER

As Bloomberg reports,

Ukraine and Russia reached an interim natural-gas supply deal in talks brokered by the European Union to secure flows before the heating season, a Russian Energy Ministry spokeswoman said.

 

The accord agreed by Russian Energy Minister Alexander Novak, his Ukrainian counterpart, Yuri Prodan, and EU Energy Commissioner Guenther Oettinger will enable resumption of deliveries of gas from Russia to Ukraine after they were halted in June in a pricing and debt conflict.

 

Russian Energy Ministry spokeswoman Olga Golant, speaking by phone, confirmed the agreement.

 

The 28-nation EU was seeking to avoid a repeat of 2006 and 2009, when disputes between the former Soviet republics over gas debts and prices led to fuel transit disruptions and shortages across Europe amid freezing temperatures.

AP reports,

Moscow and Kiev have clinched a deal that will guarantee that Russian gas exports flows into Ukraine throughout the winter despite their intense rivalry over the fighting in eastern Ukraine.

In Thursday’s signing ceremony following protracted negotiations, the two sides promised to get the gas flowing into Ukraine again after a long and bitter dispute over payments.

EU Commission President Jose Manuel Barroso announced the “very important agreement” between the two sides.

Talks to guarantee that Russian gas imports flow into Ukraine throughout the winter appeared to be at an impasse Thursday because of doubts over payments from Kiev.

A European Union official says the negotiations, which were supposed to produce an agreement Wednesday, broke up inconclusively early Thursday, with a draft for a ‘common understanding’ sent to Moscow and Kiev for consideration. The official asked not to be named because an agreement had yet to be reached.

Ukrainian Prime Minister Arseniy Yatsenyuk said the amount his government would pay for Russian gas would fall in line with global oil prices, which have tumbled in recent weeks.

Yatsenyuk said at a Cabinet meeting in Kiev that Ukraine could pay $365 per 1,000 cubic meters from the start of next year, down from the $385 rate agreed earlier this month. He said that figure may be adjusted downward to $378 until the end of the year.

Russian President Vladimir Putin and his Ukrainian counterpart, Petro Poroshenko, agreed earlier this month on the broad outline of a deal, but financial issues, centering on payment guarantees for Moscow, have since bogged down talks.

The EU has said previously that Ukraine would settle its energy debt to Russia with a $1.45 billion payment by the end of the month and $1.65 billion more by the end of the year. It has said for new gas deliveries, Ukraine would pay $385 per 1,000 cubic meters, which Russia should deliver following advance payments by Ukraine.

zerohedge



13 Comments on "Russia-Ukraine Agree Terms On Gas-Supply Through March"

  1. Makati1 on Thu, 30th Oct 2014 7:58 pm 

    I like the “pay in advance” agreement. No pay, no gas. Cold winter!

    Another article mentioned that the IMF would not be sending any more money to the Ukraine until after the new year. We shall see what happens between now and March.

  2. Kenz300 on Fri, 31st Oct 2014 1:04 am 

    Relying on Russia is a mistake……. they may need to do it short term but longer term they need to be looking for greater self sufficiency.

    The only way to get that self sufficiency is to move quickly to diversify their sources and types of energy used. Moving to wind, solar, wave energy, geothermal and second generation biofuels made from algae, cellulose and waste can provide a lot of locally produced energy or it can be imported from friendlier countries nearby.

    ——————-
    New Biofuels Facility Converts Plant Waste To Ethanol, Is 90 Percent Cleaner Than Gasoline

    http://www.huffingtonpost.com/2014/10/17/biofuels-plant-waste-ethanol_n_6001670.html

    ———————

    Poor Nations Go for Solar, Wind at Twice the Pace of Rich Ones

    http://www.renewableenergyworld.com/rea/news/article/2014/10/poor-nations-go-for-solar-wind-at-twice-the-pace-of-rich-ones

  3. M_B_S on Fri, 31st Oct 2014 5:14 am 

    As expected!

    Pay the russians with created money out of nothing and get real energy!

    M_B_S

  4. Makati1 on Fri, 31st Oct 2014 7:15 am 

    Kenz, those alternates are already showing their unreliability aren’t they?

    http://www.bloomberg.com/news/2014-10-27/europe-blackout-threat-looms-amid-power-supply-risks-study-says.html

    http://wolfstreet.com/2014/10/27/fracking-a-false-premise-that-manufactures-false-promises/

    The dream of renewable energy replacing any significant amount of current energy will be over by 2020 as will all cheap energy be history.

  5. ghung on Fri, 31st Oct 2014 9:21 am 

    Mak: “…those alternates are already showing their unreliability aren’t they?”

    From your link: “The study cited Belgium as an example…”

    Uh… Belgium has problems with its nuke plants. I would bet that near 100% of their renewables are performing as expected. Seems the problem is that Belgium put all its eggs in the totally centralized basket rather than the highly distributed, modular renewables model. Maybe this will incentivise further development of storage systems and renewable strategies. Will Non-nuclear, non-fossil fuel generation ever come close to matching the gross output of nuclear, coal and natural gas? Probably not. Time for a new strategy.

    Meanwhile, the Philippines produces about 2/3 of their electricity from fossil fuels.

  6. Davy on Fri, 31st Oct 2014 9:41 am 

    Damn, Thanks G-Man, I feel trying to keep up with the Makster’s anti-western propaganda distortions are like playing a red Queen game. It is good to have some help.

  7. JuanP on Fri, 31st Oct 2014 10:19 am 

    I do hope the Ukrainians pay and the Russians provide, but I will believe in this only after the fact. I wonder if Kiev will let the elections in Donbass happen on November 2. It hasn’t attacked yet. I hope they positively surprise me.

  8. Davy on Fri, 31st Oct 2014 10:49 am 

    Juan, the Russian winter is like an ice cold shower. It focuses ones attention quickly. I imagine the Ukr’s blinked and Putt will have scored a major victory.

    I hope we see this brush fire extinguished. I see every indication 2015 will be a wild ride. You and I could use some more prep time. I know from experience some things work out for the better. Ukr is a critical area we need to get worked out.

  9. turningpoint on Fri, 31st Oct 2014 11:37 am 

    Kenz300

    “Moving to wind, solar, wave energy, geothermal and second generation biofuels made from algae, cellulose and waste can provide a lot of locally produced energy or it can be imported from friendlier countries nearby.”

    Diffuse sources of energy? How’s that going to work for east Ukraine’s heavy industry?

    My advice to Ukraine is to ignore the advice of Kenz.

    M_B_S, they are going to pay for this gas through more debt. Just what they need…, more debt.

  10. Makati1 on Fri, 31st Oct 2014 10:02 pm 

    ghung, the US produces 84% of it’s electric from fossil fuels vs Philippines 66% as of 2013. So what?

    It never freezes here. No winters. It rarely gets over 90F so no heat problems either. So what?

    You might want to take a look at this chart… http://www.theglobaleconomy.com/Philippines/Percent_urban_population/

    US Urban = ~ 85% (2010)
    Ps Urban = ~ 50% (2010)

  11. Davy on Fri, 31st Oct 2014 10:10 pm 

    100MIL in an area the size of Arizona. So What?

  12. dissident on Sat, 1st Nov 2014 9:28 am 

    This agreement is BS. The Kiev regime has not intention of paying. And the EU has no intention of paying on behalf of its darlings in Kiev.

    Watch for hysteria about a “cut off by Russia” of gas this winter. The Kiev coup leaders will pull the same stunt that Yushenko pulled in 2009. They will close the valves on the Ukrainian side of the border and scream that they are being cut off. The western media will eagerly propagate this lie.

  13. Davy on Sat, 1st Nov 2014 9:58 am 

    Damn Dissy, I need to move to Russia because according to you these folks are saints. Life must be so happy with a pro-humanity attitude in Russia. I wish I could read more about their secrets of success. They will be the savior of the world no doubt.

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