The proposals set on Friday regarding this year’s gas supply to Ukraine by Russia have been accepted by Ukraine, says deputy energy minister Alexander Svetelik.
The new package started to develop since last week’s talks in Vienna between Russia and European Commission. The latter, acting as a mediator, prepares both sides for a final round of trilateral negotiations on a date that is yet to be announced.
The main result is that according to Russian energy minister Alexander Novak, Russia will provide a discount for Ukraine that will bring the price down to the level that is held for the neighbouring countries such as Poland. However, he also said that it will depend on spot prices, and if these equal to the contact ones, no discount should be expected.
The European Commission, in its turn, will provide $500m to Ukraine to help it fill its storages with extra 2bn cubic meters, said the head of Gazprom Alexey Miller. Another $500m may be provided by The World Bank. Together, this would make enough funds to prepare Ukraine to enter the new winter season.
However, since neither Brussels nor The World Bank have yet confirmed providing financial help to Ukraine, the country may find itself unable to supply its citizens with heat on the brink of the upcoming winter.
Nevertheless, an expert from Vygon Consulting Mariya Belova says that the EU is likely to help Ukraine since in today’s situation even a small disruption may lead to a tensity in political relations.
According to a deputy executive of National Energy Security Fund Alexey Grivach, the main success is in the agreement to stick to a new price-setting methodology that follows the example of prices for Poland.
The previous attempt, talks between Vice President of European Commission Marosh Shevchovich and Ukraine’s energy minister Vladimir Demchishin produced no outcome because the heads of banks simply did not turn up to the meeting.
Alexey Miller said that the final round may take place over this week.