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Kyiv refused Moscow’s “gas trap” and is hoping for the Stockholm Court

Kyiv refused Moscow’s “gas trap” and is hoping for the Stockholm Court

Brussels – The trilateral talks regarding the solution of the Russian-Ukrainian gas conflict, which is carried out with the involvement of the EU, have hit a dead end. Yet another round of talks in Brussels have ended without any results. The Russian offer of the $100 discount was refused by Kyiv. Meanwhile the EU Commission is counting on finding compromise regarding the loan payments and the gas prices for Ukraine before next Monday. 

The gas talks between Kyiv and Moscow with the participation of the European Union have ended without results: each side retained its own position. Only one possibility of solving disputes regarding gas prices for Ukraine remains is the arbitrary court of Stockholm. After a number of long talks between the Ministers of Energy of Russia and Ukraine with the mediation of EU Commissioner Gunther Ettinger, the sides were not able to agree on the system of debt payments and the formation of the new market price for gas, reported Minister of Energy and Coal Industry Yuriy Prodan.

“Very constructive compromising propositions sounded from the European Commission, which we were amenable to discuss,” he stated. “However the Russian side is categorically unwilling to accept another mechanism of price creation besides the discount on export customs taxes which is implemented based on the decision of the Russian Cabinet of Ministers. Therefore at the moment the only mechanism to regulate the situation that remains is the mechanism of receiving a response in the arbitrary court of the city of Stockholm.”

Slightly earlier Prime Minister Arseniy Yatseniuk was also categorically in the Cabinet of Ministers:

“The Russians made us an offer regarding the lowering of gas prices by 100 dollars, with a so called “discount.” I would like to immediately make an official statement that we know these Russian traps: the discount is established by the decision of the government of the Russian Federation – and it is suspended by the decision of the government of the Russian Federation,” said he, adding: “our proposal was and remain the same: changes to the contract.”

Russia says that it is ready to await Kyiv’s decision until Monday

Meanwhile Minister of Energy of Russia Alexandr Novak, when making his statement in Brussels on Wednesday made the proposal regarding the 100 dollar discount. According to this, the gas price for Ukraine may constitute about 385 USD per thousand cubic meters.

“This price as of today is not a market price,” answered Yuriy Prodan to this, noting the numerous offers, in particular those of reverse gas supplies, which are much lower in terms of price, even taking transportation into account.

When refusing to sign a new gas contract with Kyiv, the Kremlin says that it is ready to hold additional consultations before June 16th at meetings with Ukrainian representatives. “Only the will to become closer is necessary, and if the payments for November-October and, partially, April-May, are made.”

“In this case, before the 16th, until the moment which is as of now defined as the term of receipt of payments and the implementations of the prepayment regime, in this case we are ready to meet any day. It is only necessary to agree over the phone,” stated the Russian minister.

EU Commissioner in questions of energy Gunther Ettinger meanwhile says that compromise should be reached by Monday, and that it “comes from the principle that two discussions (regarding gas) should take place in parallel between the presidents (of Ukraine and Russia), therefore on the highest level.” Meanwhile, while the gas dispute between Kyiv and Moscow has not been settled, the representative of the EU commission admits that his institution is ready for any turn of events, meaning the possibility of full gas supply suspension.

Source: Radio Svoboda

Translated by Mariya Shcherbinina

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