Russia may lower gas prices for Ukraine once debt is paid – ministry

(Interfax – Moscow, May 12, 2014) The Russian side is ready to discuss lowering the price of gas for Ukraine if debts are repaid, Russian Deputy Energy Minister Anatoliy Yanovskiy has told journalists.

“We want contractual obligations to be met. We say that in order for a compromise to be discussed, debts have to be repaid. Pay the debt, then we can talk about things,” he said when asked if Russia was ready to lower the price of gas for Ukraine. [Passage omitted: Yanovskiy quoted giving Russian version of technical details of various gas agreements with Ukraine].

“Ukraine had to consume certain amounts of gas and had to pay for them. Neither condition was met, on the amounts or on payments,” Yanovskiy stressed. [Passage omitted: State Duma Energy Committee Deputy Chairman Pavel Zavalnyy said Ukraine had to consume 32bn cu.m. a year.]

Yanovskiy also pointed out that other alternatives to Russian gas will be more expensive both for Europe and for Ukraine. [Passage omitted: Yanovskiy said reverse supplies of gas to Ukraine were unprofitable] “It is naive to think that gas from the USA, extracted and regasified and delivered to the European market, will be competitive against gas from Algeria, Libya or Russia. Yes, there will be some sort of price surges in both directions, and this is why we always advocate long-term contracts with a price formula which all the parties understand,” the Russian deputy energy minister said.