Friday, October 31, 2014

Breakthrough: 4,6 billion dollar deal secures gas for Ukraine and EU. (Russia, Ukraine agree on gas supplies until March 2015)

From the Official Website of the European Commission, Press release, Brussels, 30 October 2014:

"After seven rounds of gas negotiations, last night's talks moderated by Günther H. Oettinger, Vice-President of the European Commission, yielded finally a breakthrough: A 4,6 billion dollar winter package, agreed by Russia and Ukraine, secures gas for Ukraine - and ultimately also for Europe.

José Manuel Barroso, President of the European Commission who witnessed today's signing of the winter package, said: "I am delighted that I can announce a major success at the end of my mandate as President of the European Commission. With our strong support, Ukraine and Russia have today found agreement on their outstanding energy debt issues, and on an interim solution that enables supplies to continue this winter. I am glad that political responsibility, the logic of cooperation and simple economic sense have prevailed."
Günther H. Oettinger, Vice-President of the European Commission, said: "This breakthrough will not only make sure that Ukraine will have sufficient heating in the dead of the winter. It is also a contribution to the de-escalation between Russia and Ukraine."
The winter package consists of two documents: 
  1. A binding protocol, signed by the European Commission (Vice-President Oettinger), the Russian Federation (Energy Minister Alexander Novak) and Ukraine (Energy Minister Yuri Prodan);
  2. An addendum to the existing gas supply contract, signed by Gazprom of Russia (CEO Alexey Miller) and Naftogaz of Ukraine (CEO Andriy Kobolyev);
The package covers the period from now until the end of March 2015 and includes the following main points:
  1.  Debts: Ukraine would settle its debts based on a preliminary price of $268,5/ 1000m3 by making payments in two tranches: 1,45 billion dollar without delay, and 1,65 billion dollar by the end of the year 2014. This adds in total up to 3,1 billon dollar of debt payment. The final price and thus the final sum of debt will be determined through the pending arbitration by the Arbitration Institute of the Stockholm Chamber of Commerce between Gazprom and Naftogaz.
  2. New gas: Russia will deliver gas following advanced, monthly payments by Ukraine. The price is below $385/ 1000m3 and calculated according to a formula in the present contract and a price reduction through a discount in export duties by the Russian Federation. Ukraine is free to order as much gas as it needs and is not subject to take-or-pay obligations foreseen in the current contract. Ukraine foresees to purchase 4 bcm until the end of the year 2014, meaning 1,5 billion dollar.
In the last weeks, the European Commission has been working intensively with the International Financial Institutions (IFI) and Ukraine to help Ukraine prepay for deliveries of gas in the coming winter. Unprecedented levels of EU aid will be disbursed in a timely manner, and the International Monetary Fund (IMF) has reassured Ukraine that it can use all financial means at its disposal to pay for gas. Further work with the IFIs on financial assistance to Ukraine, also in relation to gas supplies, will still continue, but all three sides are reassured that Ukraine will have the necessary financial means."
  http://europa.eu/rapid/press-release_IP-14-1238_en.htm?locale=en
  30/10/14 
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6 comments :

  1. Russian Govt. to Approve Gas Discount for Ukraine in Next Few Days: Novak ...

    The Russian government will approve a $100 per 1,000 cubic meters gas discount for gas supplies to Ukraine in the next few days, but deliveries in January-March will be guaranteed only if Kiev pays off $3.1 billion of accumulated debt by the end of 2014, Energy Minister Alexander Novak said.

    Under the trilateral agreement between Russia, Ukraine and the European Commission signed on Thursday, Kiev has to pay off $1.451 billion in Russian gas debt immediately and $1.65 billion by the end of 2014 to guarantee winter supplies with discounted price through March next year.

    "If Kiev fails to pay off $1.65 billion, we will stop the supplies in January. It is stipulated in the agreement," Novak said................http://en.ria.ru/russia/20141031/194871284/Russian-Govt-to-Approve-Gas-Discount-for-Ukraine-in-Next-Few-Days.html
    31/10/14

    ReplyDelete
  2. Ukraine/gaz : Moscou baisse son tarif de 100 dollars ...

    La Russie, l'Ukraine et l'UE ont signé à Bruxelles des documents sur les livraisons du gaz russe à l'Ukraine pour la période entre novembre et avril prochain.

    L'Ukraine devra rembourser d'ici fin d'année 3,1 milliards de dollars d'impayés sur un total de 5,3 milliards et prépayer l'achat des quantités de gaz supplémentaires pour l'hiver.

    Moscou accorde à Kiev une remise de 100 dollars pour 1 000 mètres cubes ce qui porte le tarif à 385 dollars. L'Ukraine a confirmé qu'elle disposait de finances pour les livraisons de 4 milliards de mètres cubes de gaz. D'après les évaluations préliminaires, le prix du gaz russe en novembre-décembre constituera 378 dollars/1 000 m3.

    Les principales sources de financement des fournitures de gaz pour l'Ukraine sont un programme du FMI en vigueur, un fonds spécial, l'utilisation par Naftogaz de ses réserves et l'aide de l'UE.
    Lire la suite: http://french.ruvr.ru/news/2014_10_31/Ukraine-gaz-Moscou-baisse-son-tarif-de-100-dollars-0100/
    31/10/14

    ReplyDelete
  3. Gazprom Could Begin Gas Deliveries to Ukraine Within 48 Hours: Gazprom CEO ...

    A document from the Russian government allowing Ukraine a $100 discount on gas per 1,000 cubic meters may be signed on Saturday, Gazprom CEO Alexei Miller said Friday in a televised interview.

    “Undoubtedly, the first step will be to cover the $1.45 billion arrears. The amendment to the contract will come into force once it’s signed, and I think that the document on a $100 discount could literally be signed tomorrow. There will be a new price of $378 [per 1,000 cubic meters]. Ukraine will make a prepayment of $1.45 million, and after that the bill will be according to the new price,” Miller said on Rossiya-24 television.
    http://en.ria.ru/world/20141031/194881863/Gazprom-Could-Begin-Gas-Deliveries-to-Ukraine-Within-48-Hours.html
    31/10/14

    ReplyDelete
  4. The protocol on the delivery of Russian gas to Ukraine as part of the "winter package" is not legally binding, Russian Energy Minister Alexander Novak said Friday....

    "The document is not legally binding…It is a declaration of intent and agreement, reached within the framework of trilateral talks. Understandably, it is more of a political document that reflects the main agreements," Novak said.

    According to the energy minister, the fulfillment of the agreements will be in line with the current contract between Russian energy giant Gazprom and Ukraine's Naftogaz company.
    http://en.ria.ru/business/20141031/194894384/Protocol-on-Winter-Package-Gas-Deliveries-Not-Legally-Binding.html
    31/10/14

    ReplyDelete
  5. EU Commissioner Hopeful Agreement on Gas Supplies to Improve Russian-Ukrainian Relations ...

    EU Energy Commissioner Gunther Oettinger is hopeful that the agreement on Russian gas supplies to Ukraine reached on Thursday will eventually lead to a thaw in Kiev-Moscow relations.

    "Now we have made a step in a different direction, a step (away) from the escalation and intensification of the conflict and towards its de-escalation and confidence building. Perhaps now, based on the agreement reached, further steps could be taken towards the regulation of relations between the neighboring countries, towards their normalization," Oettinger stated in an interview with the German radio station Deutschlandfunk................http://en.ria.ru/world/20141031/194907569/EU-Commissioner-Hopeful-Agreement-on-Gas-Supplies-to-Improve.html
    31/0/14

    ReplyDelete
  6. L'Ukraine a acheté des matériels de guerre pour 11,5 M USD ...

    L'armée ukrainienne a acheté des matériels pour 11,5 millions de dollars et a réparé près de 14.500 matériels de guerre, a annoncé vendredi à Kiev le vice-ministre ukrainien de la Défense Piotr Mekhed.

    "Les troupes ont reçu des armes et matériels pour plus de 150 millions de hryvnias (environ 11,5 millions de dollars", a indiqué M.Mekhed devant les journalistes.

    L'armée du pays s'est notamment dotée de chars modernisés Boulat, d'avions modernisés Su-25, de roquettes antichar Stougna-P, de systèmes optroniques d'autoprotection d'aéronefs Adros et d'hélicoptères Mi-8MTV.

    Par ailleurs, l'armée ukrainienne recevra prochainement près de 700 caméras thermiques, plus de 600 armes d'infanterie et de nouveaux blindés BRT-4E.

    L'Ukraine entend débloquer 1,268 milliard de hryvnias (quelque 100 millions de dollars) en 2014 pour l'achat d'armements et de matériels.

    Selon le vice-ministre, il faut du temps pour bien équiper les soldats ukrainiens qui mènent une opération dans l'est du pays, notamment pour leur fournir des effets chauds pour l'hiver...............Lire la suite: http://french.ruvr.ru/news/2014_10_31/LUkraine-a-achete-des-materiels-de-guerre-pour-11-5-M-USD-8796/
    31/10/14

    ReplyDelete

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