Ukraine might need to brace itself for a long, cold winter, after's talks in Brussels to unblock deliveries of Russian gas were deadlocked on Thursday, as the Russian side demanded a firm commitment from the EU to cover Kiev's bill.
EU-hosted talks were adjourned after dragging on until 4 AM. They should resume later today ifUkraineand the EU had a firm financing deal in place, Gazprom head Alexei Miller said.
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 withUkraineand the West deepened, wants more legal assurances that Kiev can pay some $1.6 billion for new gas immediately.Ukraine since then has been relying on gas transfers from other European countries and its own reserves.
Russian President Vladimir Putin and his Ukrainian counterpart, Petro Poroshenko, agreed earlier this month on a broad outline of a deal, but financial issues, centering on payment guarantees for Moscow, have since bogged down talks.
But with each week, the need for a resolution becomes more pressing, since winter is fast approaching in Ukraine, where temperatures often sink below freezing for days.
EU Commission President Jose Manuel Barroso conferred "a number of times" Wednesday with Poroshenko in Kiev, stressing that "an agreement was within reach," a Commission statement said.
The EU has said previously that Ukraine would settle its energy debt to Russia with a $1.45 billion payment by the end of the month and $1.65 billion more by the end of the year. It has said for new gas deliveries, Ukraine would pay $385 per 1,000 cubic meters, which Russia should deliver following advance payments by Ukraine.
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 bridgingfinancefor Kiev. But the Russian negotiators said they wanted to see a signed agreement on EU financing for Ukraine.
Russian Energy Minister Aleksandr Novakwas quoted by RIA news agency as saying he had been told in the talks that Ukraine was discussing funding for 4 billioncubicmetres of gas with the European Commission and the International Monetary Fund but he had seen no guarantee of it.
"This isn't about guarantees, but only statements from the Ukrainians," he said. "We were shown no written guarantees."
He noted thatRussiawas only offering to open the taps once prepayments were made by Ukraine, whoseeconomyis in crisis and which has a record of payment difficulties. "If there's money, there will be gas," Novak said.
http://www.neurope.eu/article/another-winter-discontent-talks-russian-gas-ukraine-deadlocked