MOSCOW/KIEV: Moscow and Kiev took tentative steps yesterday towards ending their standoff over the price of Russian gas supplies to Ukraine that has threatened to disrupt onward deliveries to western Europe.
A day after Moscow suggested price negotiations with Kiev could resume if its new leaders paid off part of their debts, Ukraine said it could give around $4bn by the end of May but stood by a demand for a much lower rate for supplies.
Renewed talks would reduce the threat of a shut-off of Russian gas exports to Ukraine that could affect Europe, and would benefit Russia’s state-controlled Gazprom, which has debts of just over 1 trillion roubles ($30m).
Russian President Vladimir Putin urged European leaders to do more to help Ukraine through its economic crisis and to resolve the standoff over gas, repeating a threat to cut exports if Kiev fails to pay in advance for June deliveries but also the talks offer.
“The Russian Federation is still open to continue consultations and work together with European countries in order to stabilise the situation,” he said in a declaration to foreign leaders.
Ukraine’s deputy energy minister, Ihor Didenko, reiterated that Gazprom’s price of $485 per 1,000 cubic metres was “non-market, monopoly-inflicted and unfair”, adding that Kiev was coming up with proposals to avoid the gas taps being switched off.
“The Ukrainian side has clearly said that if the price of $268.5 (per 1,000 cubic metres) is fixed, then Naftogaz is ready to pay before the end of May a sum of around $4bn,” he told a news conference.
Ukraine, dependent for more than half of its gas needs on Russia, has refused to pay at the price Russia is asking, accusing Moscow of using energy supplies “politically” to punish the country for trying to break free from its influence. Kiev says $268.5 per 1,000 cubic metres is a fair price.
Gazprom has stood firm, saying it is sticking to a 2009 contract signed by Kiev, and has threatened to cut supplies to Kiev if it fails to redeem it debt, which it says stands at $3.51bn not including payments for June.
Moscow has twice before reduced gas supplies over price disputes, hurting supplies to Europe, which takes about half of its gas from Russia through Ukraine, at the height of winter.
But Russia has signalled a slight softening of its stance, with Prime Minister Dmitry Medvedev saying on Wednesday that Moscow would start gas talks if Kiev’s new leaders pay off at least part of its debts and that the price could be discussed.
Reuters
