Russia, Ukraine agree on interim gas deal

Berlin, Sep 27: European Union (EU) Energy Commissioner Guenther Oettinger has said that Russia and Ukraine have agreed on an interim deal over gas supplies and would meet next week to decide on final details.

The EU, Ukraine and Russia held a trilateral ministerial meeting on energy security in Berlin Friday, Xinhua reported.

The three sides were represented by Oettinger, Russian Energy Minister Alexander Novak and Ukrainian Energy Minister Yuriy Prodan.

Representatives of Russian and Ukrainian gas companies also attended the meeting.

Speaking at a press conference after the talks, Oettinger said the three sides held intensive talks and negotiated a plan to secure gas supplies in Europe for the coming winter.

According to the winter package mediated by the EU, Kiev would pay $2 billion to Russia by the end of October and $1.1 billion by the end of this year to pay off gas debts.

In return, Russia would deliver at least five billion cubic meters of gas to Ukraine after it has received the first $2 billion.

The price discussed for the gas deliveries was $385 per 1,000 cubic meters.

Novak said that the three sides made this plan as a basis to solve the gas dispute and to secure gas supplies to Ukraine and EU member states for the next six months.

Prodan said he believed Ukraine and Russia could settle questions and differences remaining on issues concerning gas price and payment of the old debts.

The interim agreement has to be approved by the governments in Moscow and Kiev, and further trilateral talks were planned next week to decide on final details of the deal.

Ukraine and Russia have been embroiled in a standoff on gas pricing for some time.

In June, Russia cut all gas supplies to Ukraine as the two sides failed to reach an agreement on payments.

The EU is heavily dependent on Russia, from whom it imports a third of its oil needs, 39 percent of gas and 26 percent of solid fuels.

IANS