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Weapons of Mass Destruction (WMD)

Poroshenko: Ukraine Yet to Receive Payment for Russian Gas Transit

RIA Novosti

19:29 07/11/2014

KIEV, November 7 (RIA Novosti) – Kiev has not yet received payment for Russian gas transit to Europe in September and October, Ukrainian President Petro Poroshenko said Friday in a phone conversation with German Chancellor Angela Merkel.

'The parties have also discussed the implementation of the EU-Russia-Ukraine gas agreements. The President said that Ukraine had paid the first tranche of its gas debt, but has not yet received the payment for the transit of Russian gas to EU countries in September and October,' the statement on the Ukrainian president's website said.

On Wednesday, Ukrainian Energy Minister Yuri Prodan said Ukraine expected to receive the next payment for Russian gas transit to Europe in November.

Russian energy giant Gazprom's payments for gas transit through Ukraine made in 2012-2013 were expected to cover the period up to January 2015. However, after Gazprom canceled the discount previously given in exchange for the presence of Russia's Black Sea Fleet in Crimea, the price of gas used in transit rates calculations soared to $485 per 1,000 cubic meters.

Gazprom has noted that the contract with Ukraine's Naftogaz implied pegging transit rates to gas prices, hence, the transit rate should have increased from April 1. In August, Gazprom spokesperson Sergei Kupriyanov said the advance payment covered only a half of 2014, requiring the Russian gas giant to pay an extra $10.5 million. Naftogaz, though, returned the payment.

Under the deal reached on October 29-30, Russia agreed to resume the delivery of gas to Ukraine at a price of $378 per 1,000 cubic meters to the end of 2014 and $365 for the same amount in the first quarter of 2015, while Kiev must pay Gazprom $3.1 billion of its debt to the company before the end of December.

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