Kiev expects gas deal with Russia by April 14: minister

Source:Reuters Published: 2015-4-2 0:38:01

Ukraine, locked in a long-standing pricing row with Russia over gas, hopes to sign a memorandum on supplies with Moscow this month that will run until the end of March 2016, its energy minister said on Wednesday.

Russia and its ex-Soviet neighbor agreed last year on a "winter package" for supplies with a price discount of $100 per thousand cubic meters and advance payments, but that ­accord expired on Tuesday and has yet to be replaced.

"A memorandum will be signed for the whole period until the end of the heating ­season in 2016," Energy Minister Volodymyr Demchyshyn said.

He gave no details on the deal, which he expected to be signed by April 14, but said it could include conditions, pricing and volumes of gas.

Moscow and Kiev, which are at loggerheads over a separatist rebellion in east Ukraine, are bound by a 10-year gas agreement signed in 2009 which successive Ukrainian governments say carries an onerous price that weighs ­heavily on the country's economy.

Although the old deal has expired, the pipes remained open, with Russia's top natural gas producer Gazprom saying on Wednesday that Ukraine had requested 5 million cubic meters of gas for April 1.

"Gazprom will fulfill it," said Gazprom spokesman Sergei Kupriyanov.

Previous gas rows ­between Ukraine and Russia have ­affected European Union markets, where Gazprom covers one-third of gas demand. Around 40 percent of that gas travels to Europe via Ukraine.

Earlier on Wednesday European Commission Vice President Maros Sefcovic said he would broker talks in the middle of April and was hopeful of being able to negotiate more favorable terms for Kiev.

Posted in: Europe

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