Ukraine Gas Supplies in Doubt as Russia Seeks EU Payment Deal
TEHRAN (Tasnim) - Ukraine's efforts to unblock deliveries of Russian gas as winter sets in were deadlocked on Thursday as Moscow's negotiators were quoted demanding firmer commitments from the European Union to cover Kiev's pre-payments for energy.
EU-hosted talks were adjourned after running late into the night, Energy Minister Alexander Novak and the head of Russian gas firm Gazprom (GAZP.MM) told Russian news agencies. They would resume later in the day if Ukraine and the EU had a firm financing deal in place, Gazprom head Alexei Miller said.
Ukrainian and EU officials were not available. A spokeswoman for Energy Commissioner Guenther Oettinger issued a statement cancelling a news briefing that had been tentatively set for 8:30 am (0730 GMT) in the event of an agreement.
There has already been agreement on the price Kiev will pay for gas over the winter, the amount to be supplied and the repayment of some $3.1 billion in unpaid Ukrainian bills but Moscow, which cut off vital pipelines in June as the conflict with Ukraine and the West deepened, wants more legal assurances that Kiev can pay some $1.6 billion for new gas up front.
Some critics of Russia question whether its motivation is financial or whether prolonging the wrangling with ex-Soviet Ukraine and its Western allies suits Moscow's diplomatic agenda, Reuters reported.
Ukraine is in discussions with existing creditors the EU and the IMF and German Chancellor Angela Merkel, concerned about vital Russian gas supplies to the rest of Europe has spoken of bridging finance for Kiev. But the Russian negotiators said they wanted to see a signed agreement on EU financing for Ukraine.
Novak was quoted by RIA news agency as saying he had been told in the talks that Ukraine was discussing funding for 4 billion cubic metres of gas with the European Commission and the International Monetary Fund but he had seen no guarantee of it.