Gas talks: Oettinger proposed supply agreement for coming winter.

Tags:
2014-09-29

At the gas talks in Berlin, Vice-President Guenther Oettinger proposed a new compromise to secure gas supplies to Europe and the Ukraine during the winter season.

Vice-President Guenther Oettinger said:

"This could be a fair deal for both sides to break the deadlock and ensure that gas supply to Ukraine and EU is assured for the coming winter."

The proposal envisages the following comittments:

- Ukraine would settle its debts based on a preliminary price of $268,5$/1000m3 by making payments in two tranches: 2 Billion $ by the end of October and 1,1 Billion $ by the end of the year.

- Gazprom and Naftogaz agree that at least 5 bcm based on a price

of 385$/1000m3 will be delivered to Ukraine in the coming winter with the possibility for Naftogaz to order more gas if needed. 5 bcm is the minimum volume Ukraine considers it would need in the coming winter.

The details of the proposal will be discussed by both governments and may be subject to another round of trilateral talks next week.

If agreed, the proposal should be binding on both parties and complement the existing gas supply contract.

Such an interim agreement is necessary as both Ukraine and Russia have referred the dispute to the international arbitration court in Stockholm and a final decision on the price and the debt is only expected next year.

Source: European Commission

  • 290 reads