Interfax: Russian PM tells minister to seek compromise with Ukraine on gas

(Interfax – October 6, 2014) Russian Prime Minister Dmitriy Medvedev said on 6 October that the search for a compromise with Ukraine over the gas issue needs to continue, with the understanding that the existing debts should be paid while the terms for Ukraine should be sufficiently acceptable to it.

“It is necessary to continue a search for compromises, it is necessary to continue contacts with the understanding that the debts have to be paid but the terms for Ukraine in this situation should be sufficiently acceptable, at which your meeting now with the participation of the European Commission is aimed,” Interfax quoted Medvedev as saying at a meeting with Economic Development Minister Aleksey Ulyukayev and Energy Minister Aleksandr Novak.

“I think that at the given moment this gives quite a positive effect. Therefore I ask for these talks to be continued,” Medvedev added.

During the meeting Novak recalled that a draft protocol, which is to be signed by three sides – Russia, the EU and Ukraine – has already been drawn up. Novak said that the draft protocol has been sent to the Ukrainian authorities.

“At present our joint proposal with the European Commission is being considered by the Ukrainian side. We are waiting for a response. We think that this kind of package solution for six months could become a good solution for getting through the autumn and winter period and for ensuring reliable supplies to European consumers,” Novak said.

According to Novak, in order to get reliably through the autumn and winter period the suggested gas price for six months includes “a discount of 100 dollars from the current contractual price and amounts to 385 dollars per thousand cubic metres”.

“Well, this is our historical position and we think it is very favourable to Ukraine,” Medvedev said.

Russia is ready to supply to Ukraine 10bn cubic metres of gas, which is necessary for getting through the autumn and winter period, TASS news agency quoted Novak as saying at the meeting.

“Gazprom can supply to Naftohaz [Ukrainian state-run gas company] the minimal amount – 5bn cubic metres on a ‘take-or-pay’ basis in the regime of prepayment, Naftohaz will be under obligation to pay in the regime of prepayment for 5bn cubic metres of gas. At the same time there could be further 5bn cubic metres through additional auction but this would not be on a ‘take-or-pay’ basis but on the basis of additional requests if these are needed in winter due to the temperature regime,” TASS quoted Novak as saying.