The EU, Ukraine, Russia: a joint energy package, however without a current gas price

The EU, Ukraine, Russia: a joint energy package, however without a current gas price
Berlin – Trilateral gas talks were held in the German capital between the EU Commission, Ukraine, and Russia. EU Commissioner for Energy Gunther Oettinger, Minister of Energy and Coal Industry of Ukraine Yury Prodan and Minister for Energy of Russia Oleksandr Novak were unable to settle a price on Russian gas for Ukraine, however they managed to develop a scheme for Kyiv to pay its debt for the carbohydrates that had been supplied before. 
Ukraine is obliged to pay Gazprom 2 billion USD of debt by the end of October, and the rest, 1,1 billion USD, before the year is over. As Gunther Oettinger noted, by the end of the year Kyiv is obliged to pay 3 billion dollars of debt in total. The EU Commissioner also reported that the Stockholm Court would decide the fate of the remaining part of the debt and the process of its payment. Minister of Energy and Coal Industry of Ukraine Yury Prodan insisted on this. He noted that all the decisions made as of today are only a compromise for the next six months, adding: “First and foremost we need, at least in the interim period, a normal commercial price. Unfortunately, today we failed to reach an agreement with the Russian side regarding the mechanism of gas price formation itself.” Russian Minister of Energy Oleksandr Novak
stated that the EU and the World Bank will be able to guarantee Ukraine’s payment of debt for the Russian gas that had been imported before. “As of today, Naftogaz’ total debt to Gazprom constitutes 5,3 billion USD, and includes two component. They are debts for the last two months of the previous year, as well as for the gas that came in April, May, and June of the current year,” Novak said after the meeting in Berlin.

How will Ukraine survive the winter? 

Gazprom is obliged to supply Ukraine with 5 billion cubic meters of gas in the nearest months. However, under the condition that Ukraine pays the 2 billion dollars of debt and will continue to pay for the future supplies, at a price of 385 USD per thousand cubic meters. The so-called ‘winter energy package’ will be effective throughout six months and should be signed by the end of the following week. EU Commissioner Oettinger considers this gas argument incredibly complicated, as it is political. Whatever the case may be, the problem has to be solved immediately: taking into account that winter is approaching, the EU Commissioner noted.

For joint energy security

Hesitation threatens not only Ukraine, but also the stability of gas supplies to EU countries. “If the winter energy package does not work, there is no guarantee that winter 2009 will no repeat itself. I really hope that the sides will sign it next week,” Oettinger stated. According to the EU Commissioner, the winter energy package agreement is a good decision for the next half-year, and satisfies Kyiv, Moscow and Brussels.

To suggest a correction or clarification, write to us here

You can also highlight the text and press Ctrl + Enter

Please leave your suggestions or corrections here



    Euromaidan Press

    We are an independent media outlet that relies solely on advertising revenue to sustain itself. We do not endorse or promote any products or services for financial gain. Therefore, we kindly ask for your support by disabling your ad blocker. Your assistance helps us continue providing quality content. Thank you!

    Related Posts

    February 11: The Russian proposal at the Summit in Minsk is unacceptable – president of Ukraine Poroshenko

    U.S., UK, Canada, Ireland, Australia, New Zealand, South Africa

    February 11 – The Russian proposal at the Summit in Minsk is unacceptable – president of Ukraine Poroshenko. Russia deliberately disrupts agreements.

    February 11 – 19 Ukrainian military were killed and 78 wounded as a result of shelling near the burial mound "Hostra Mogyla" close to Debaltseve and at other locations within ATO area, – informed the spokesman for the General Staff of the Armed Forces of Ukraine Vladyslav Seleznyov at a briefing on Wednesday morning.

    February 11 – In Donbas pro-Russian militants shelled the positions of Ukrainian troops 27 times on the night of February 11th. Most of the attacks occurred in the direction of Luhansk. 87 pro-Russian militants and 42 units of military equipment were destroyed in the last 24 hours (including 12 tanks, 14 multiple rocket launchers and 16 armored vehicles).

    February 11 – In Donetsk 6 people were killed and 8 wounded as a result of shelling at the bus station and entrance office of "Donetsk Metallurgical Plant".

    February 11 – President of Ukraine Petro Poroshenko spoke about a successful military operation at Debaltseve foothold: "Several successful operations were conducted yesterday at Debaltseve foothold. They allowed us to gain control over two municipalities and the contact line", – said Poroshenko.

    February 11 – "People's Republic of Luhansk" and "People's Republic of Donetsk" demand that Ukraine stops the ATO and are requesting autonomy and new elections, – as stated in a protocol draft handed over on Tuesday night by the leaders of the terrorists to the contact group in Minsk.

    February 11 – Russian Federal TV Station "Channel 5" has broadcast a story describing how quickly and easily Russian troops can enter European capitals and threatened the West with missile attacks. Show's authors vaguely disguised this information as campaign to hold "Victory Day parades" in the EU member-states capitals.

    February 11 – Russia implemented a direct military intervention during the battle at the city of Debaltseve, – stated Lieutenant General Ben Hodges, Commander of Allied Land Command (NATO).

    February 11 – Russian Foreign Ministry believes that border control issues should be should negotiated upon with the militants, which, in its turn, doesn't provide a solution to the problem, – stated Russia's Foreign Minister Sergei Lavrov.

    February 11 – Government is ready to establish martial law, should there be esalation of the situation in the east. This was stated by President Petro Poroshenko during a government meeting. Poroshenko emphasized that it is precisely "from the results of the summit that it will depend if we will be successful in stopping the aggressor by diplomatic means, or if we will switch into a very different course." I and the government, and Parliament are ready to make a decision to impose martial law in the entire territory of Ukraine," he noted.

    "In no way will I delay this decision, if the the irresponsible acts of the aggressor bring about a serious continued escalation of the conflict," he emphasized. "I am convinced that our country can protect itself and that every person will do whatever posssible in order to demonstrate that victory will be ours. However, I stress, that I am a president of peace, and thatn through army means, the situation in Donbas should not be decided," he added.

    Ukraine cannot be a buffer state

    Photo report from eastern Ukraine

    Help Ukraine seize this chance

    Economist Edward Lucas Attacks Russia's RT and Sputnik for "manufacturing lies" and those working there as "freaks and propagandists"

    Feature by BBC Monitoring on 9 February

    Russian state media have hit back strongly at British journalist Edward Lucas after he criticized them at the recent Munich Security Conference and suggested that journalists working for them should be ostracized. One top TV presenter went as far as to brand Lucas a "village idiot".

    At a panel discussion at the annual Munich Security Conference on 6 February, Lucas, a senior editor at The Economist and author of The New Cold War, accused the Kremlin's international media operations, RT (formerly known as Russia Today) and Sputnik (rebranded successor to the Voice of Russia) of "manufacturing lies".

    He said the people working for them were "freaks and propagandists", who should be the target of a campaign of ostracism, according to records of the discussion published by RT and Russian state news agency RIA Novosti.[1]

    "If anyone puts a CV on my desk and on that CV I see they worked for RT or Sputnik or one of these things, that CV is going into the bin," Lucas said. He added that people in the West were wrong to see working for the Kremlin's international media as a "first stage on the career ladder". "It's not, it's the last stage," he told the Munich conference.

    "Journalistic Joe McCarthy"

    Russian state media came back, all guns blazing, with Lucas even getting a whole slot to himself on state channel Rossiya 1's weekly current affairs news roundup Vesti Nedeli.[2]

    Outspoken host Dmitriy Kiselev, who is also director-general of Sputnik's parent company Rossiya Segodnya (which confusingly translates as Russia Today), hurled a whole fistful of epithets at Lucas – "odious British journalist", "hysterical Londoner" and even "village idiot" – while rubbishing his analysis of Russian politics and accusing The Economist of practising censorship.

    RT responded more primly, saying it was "absolutely outraged" by Lucas's "specious attacks", which, it said, were particularly "despicable" as several of its journalists were daily risking their lives to "report on stories nobody else dares to touch".[3]

    Sputnik also had Lucas in its sights, describing him in one article as a "journalistic Joe McCarthy" – a reference to the US senator who instigated a witch-hunt against Communist sympathizers in the 1950s.[4]

    Lucas himself appeared to revel in the backlash, responding to Kiselev in kind.

    "Better than a Pulitzer prize? i get prime-time abuse from vile Kremlin mouthpiece Kiselov," he tweeted.[5]

    He could also take comfort from the support of fellow Twitterati, who suggested he had got under RT's skin.

    US journalist Michael Weiss observed that Lucas had "figured out RT hacks' Achilles heel", while Times columnist Oliver Kamm said he had "badly wounded them".[6][7]

    Writer and Russia watcher Ben Judah also weighed in, saying Lucas had put the wind up RT. "Experts should refuse to appear on RT – or any other? disinformation channel", he added.[8]

    "Misinformation"

    RT and its supporters also entered the fray on Twitter.

    One of its contributors, Robert Bridge, accused Lucas of being "scared to hear another side of the story", while the channel itself suggested his attack on its journalists may have been provoked by recent criticism of The Economist on its show In The Now.[9][10]

    In The Now dismissed as "absurd" a claim by The Economist that Russian state TV "conceals" bad economic news from its viewers. It showed excerpts from top TV bulletins talking about the collapse of the rouble to prove the contrary. It also said that the story of the rouble's woes and the looming recession had been well covered in Russian newspapers. To suggest otherwise, it said, was to promote "misinformation".[11]

    It called its analysis of The Economist's coverage a "tutorial on how to write a propaganda article".

    But RT's criticism of The Economist was itself guilty of omission and distortion.

    For example, it made no mention of the fact that on the day in mid December when the rouble tumbled by some 10 per cent, Rossiya 1 main news had ignored this story altogether.

    Also, it illustrated its claim about the Russian press's economic coverage with screenshots not from leading newspapers but from news agencies and websites, one of them a little known business portal from the Volga republic of Tatarstan.

    The panel discussion at the Munich conference, which also featured NATO commander and US general Philip Breedlove and Norwegian Defence Minister Ine Eriksen Soreide, looked more broadly at the issue of hybrid warfare and the role played in it by different media organizations.

    According to a report by Judy Dempsey on the Carnegie Europe website, the participants said that one of the reasons why RT and its ilk have been able to make such an impact is the cutbacks at top Western international media, such as the BBC World Service and the Voice of America.[12]

    [1] http://rt.com/op-edge/230315-rt-responds-lucas-munich/

    [2] http://vesti7.ru/news?id=45745

    [3] See note 1

    [4] http://sputniknews.com/columnists/20150208/1017973545.html

    [5] https://twitter.com/edwardlucas/status/564531479263600642

    [6] https://twitter.com/michaeldweiss/status/564468359048486912

    [7] https://twitter.com/OliverKamm/status/564408994853572609

    [8] https://twitter.com/b_judah/status/564541740863193091

    [9] https://twitter.com/Robert_Bridge/status/564665181549391873

    [10] https://twitter.com/INTHENOWRT/status/564758039371472896

    [11] https://www.youtube.com/watch?v=2H5X3WYm_3U

    [12] http://carnegieeurope.eu/strategiceurope/?fa=58998

    Source: BBC Monitoring research 9 Feb 15

    P.S.: Please spread this appeal as much as possible.

    February 14: Russia’s aggression in Ukraine is part of a broader, and more dangerous, confrontation with the West

    February 14 – Prosecutor General of Ukraine in cooperation with Security Service of Ukraine has detained a former Chief of the Party of Regions Oleksandr Yefremov, – said Prosecutor General of Ukraine Viktor Shokin in his comment to Internet media "Ukrainska Pravda".

    February 14 – At 0:00 the Armed Forces of Ukraine will cease fire along the contact line, – stated the President of Ukraine Petro Poroshenko during his address from the General Staff on February 14th.

    February 14 – President of Ukraine Petro Poroshenko has said that peace agreements are in jeopardy as a result of the situation at Debaltseve lodgement. "The whole world is waiting tensely for tomorrow's morning with bated breath. Those who would like to derail the peace process at its outset, have been warned about the consequences. I am not going to say what Ukraine will do if the peace process is disrupted. I will say one thing – we will not turn another cheek if we are provoked and may the Lord forgive me for that", – said Poroshenko.

    February 14 – Battalion Donbas soldiers captured 17 fighters in the area of the village Lohvyn in Donetsk region.

    February 14 On February 14, terrorists are preparing a massive provocation, which may result in the entry of armed forces from RF. This was aired on Channel 5 by the spokesman of Sector M, Dmytro Chalyj. And they did accomplish this – they shelled with Hrads the Russian territory. Now Russia will blame the Ukrainian side for this.

    February 14 In the internet there appeared a video which testifies to the gathering of armored artillery by the Russian side from Crimea to the administrative border with Ukraine.

    February 14 – As a result of constant artillery shelling of Debaltsev by the fighters, "the city is burning", the building of the city police was hit directly by Hrad units. This was stated by the Head of the Regional Headquarters of MVS in Donetsk region, Viacheslav Abroskin.

    February 13 – 11 Ukrainian military were killed and 40 injured in the ATO area in the last 24 hours, – NSDC spokesman Andriy Lysenko.

    February 13 – According to new Minsk agreements, the city of Debaltseve should remain under Ukraine's control. However, Russian terrorists were given an order to gain control over the cities of Debaltseve and Mariupol by February 15th, – informed Deputy Minister of Defense of Ukraine Petro Mekhed: "According to information available and taking into account the fact that there has been an agreement to cease fire on February 15th (0:00), Russian troops and pro-Russian militants were ordered to occupy Debaltseve and Mariupol".

    February 13 – Soldiers of 79th brigade of Ukrainian army have detained a terrorist "Gnom" ("Dwarf") who is allegedly second in command at the detachment of Russian terrorists named "Somali". He personally participated in torturing Ukrainian military prisoners.

    February 13 – A tank battle for the village of Shyrokine and an artillery battle for the village of Stakhanka have taken place – both are located close to Mariupol, – reports Ukrainian regiment "Azov".

    February 13 – When the terrorists were shelling the town of Shchastya (Luhansk region), they killed and injured civilians at a local café.

    February 13 – Right wing party "Pravyi Sektor" believes that that any agreements with separatists are unconstitutional and thus the party reserves its right to active military operations, – stated party leader Dmytro Yarosh.

    February 13 – Russian terrorists have shelled the city of Artemivsk, which is located behind the combat line protected by Ukrainian forces.

    February 13 – 4 people were killed and 16 injured as a result of shelling by Russian terrorists at the city of Hirnyk (Donetsk oblast).

    February 13 – US Senate has passed a resolution on the release of Ukrainian pilot and member of Ukrainian Parliament Nadiya Savchenko.

    February 13 – In the last hours before the beginning of the ceasefire, foreseen by the mutual agreements in Minsk, the danger of bloodshed only increases. This was stated by the German official Gernot Erler, an advisor to Merkel on Russia, reported the Bayerischer Rundfunk: "The risk is truly very high. In the last hours before the ceasefire, there exists the danger that the sides will attempt to increase losses among each other," he said. According to him, the heightening may lead to the reality that the readiness for a ceasefire will dwindle to nothing. "There is a diffference between Minsk-1 and Minsk-2. I see more concrete definitions in the new agreement. Also, backing up the new document are three preidents and a chancellor," noted the politician.

    What Russia wants:From cold war to hot war

    Russia's aggression in Ukraine is part of a broader, and more dangerous, confrontation with the West

    Marco Bojcun: MINSK II: Land for a ceasefare, but not for pease

    Lithuania's view on Minsk2

    Putin's war on the West

    Flawed deal in Minsk

    Polish view on Minsk2

    Ukraine's other war – on corruption (NATO Review)

    Lilia Shevcova: The Kremlin Is Winning

    By Taras Kuzio

    What will the west do when Minsk-2 unravels?


    European leaders desperate to avoid going down an Iranian-style route of economic and financial sanctions and to dissuade the US from sending weapons signed a second agreement to end the fighting in Ukraine on Thursday in the Belarus capital, Minsk. But it will be as unworkable as the first Minsk agreement signed in September 2014. The new agreement has weaknesses similar to those of its predecessor and will unravel in the next few months.

    How will the weak Organisation for Security and Cooperation in Europe (OSCE) go about removing foreign troops and mercenaries? Will Russia really permit Ukraine to take control of its border next year, after local elections in March and the adoption of a new Ukrainian constitution that outlines some form regional devolution to the Donbas?

    Indeed, could elections ever be considered free and far if they are held under the barrel of a gun? With crime rampant in the separatist-controlled Donbas, will it be safe to transfer funds for social payments and pensions from Kiev to the region and for taxes to be transferred back to the central government?

    The reaction from leaders in the region was sceptical or cautious at best. Dalia Grybauskaitė, Lithuania's president, said Minsk-2 was a "weak" document; Bronisław Komorowski, Poland's president, said peace was still a faraway goal.

    The main reason Minsk-2 will not hold is that the person who began the conflict – Russian President Vladimir Putin – has not achieved his strategic goal of destroying Ukraine as an independent state. Western sanctions have not served as a deterrent.

    As Andrey Illarionov, a former economic adviser to Putin, reminded us this week:

    the goal of Putin's war against Ukraine is an attempt at the inclusion of it, Belarus, and also Russian-speaking enclaves in other countries in some kind of geopolitical union called 'the Russian world,' with the liquidation or at least the limitation of their sovereignty.

    The Donbas conflict will only end, he argues, if Putin gives up "the policy of denying the statehood, sovereignty and independence of Ukraine and other states with Russian or Russian speaking population".

    Putin has always confused Russian speakers in Ukraine with Russians, and has talked of "17m Russians" living in Ukraine. That this is a misnomer can be seen from the weak support for separatism in the six Russian-speaking regions of eastern and southern Ukraine outside the Donbas.

    US and EU leaders are unwilling to face the implications of a return to the Europe of the 1930s, with one country seeking to destroy another. They are desperate to put off the inevitable confrontation with Russia through negotiation. A year ago, when former US Secretary of State Hilary Clinton made an analogy between Nazi Germany and Putin's Russia defending their co-ethnics in other countries, she was ridiculed. But today, her critics agree with her.

    Putin's demand for Ukraine to become a federal state is a non-starter. It has no support among the Ukrainian public or its elites and is an attempt at 'Bosnianising' the country. No federal country in the world gives its provinces a veto over foreign and defence policy, as Putin is insisting the Donbas must be given in Ukraine.

    Putin's objective to install a pro-Russian leader, parliament and government presupposes the annulling of presidential and parliamentary elections held in May and October of last year that were recognised as free and fair by the OSCE, the Council of Europe and the EU. No sovereign country in the world would accept such a demand from its neighbour.

    Putin's paranoia about Nato and EU enlargement into what he views as Russia's 'zone of privileged interests' is a misnomer. Although an April 2008 Nato summit in Bucharest named Ukraine and Georgia as future members, France and Germany have said they would veto this. The EU has never offered membership to Ukraine.

    And who will persuade the Ukrainian parliament to overturn a December vote by a constitutional majority of 302 to move away from the non-bloc status that Putin wants Ukraine to return to?

    When Minsk-2 unravels, what will US and EU leaders do next?

    Ukraine will not agree to a Minsk-3. If Russia and the separatists again fail to implement the agreement, the only options open will be to remove Russia from the Swift international payments system, blacklist its president, prime minister and its foreign and defence ministers, and supply Ukraine with defensive military equipment, training and satellite intelligence.

    You can't make the same mistake twice. The second time you make it, it's no longer a mistake. It's a choice.

    Taras Kuzio is a research associate at the Centre for Political and Regional Studies, Canadian Institute for Ukrainian Studies, University of Alberta and non-resident fellow at the Center for Transatlantic Relations, School of Advanced International Relations, Johns Hopkins University.

    P.S.: Please spread this appeal as much as possible.