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Progress in gas talks

May 30, 2014

Negotiations between Russia and Ukraine aimed at ending a dispute over gas payments have broken off without resolving the issue. However, progress was made and talks are to continue.

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EU-Energiekommissar Günther Oettinger und Gazprom-Chef Alexej Miller
Image: Reuters

European Energy Commissioner Günther Oettinger (pictured above left) told reporters after the negotiations in Berlin concluded on Friday that while some issues remained to be resolved, the two sides had agreed to meet again on Monday in Brussels.

"This was a step forward but there was no breakthrough today. That could be achieved on Monday," Oettinger said.

Ukraine's Energy Minister Yuri Prodan told reporters that Kyiv had made a payment of $786 million (576 million euros) to Russian gas giant Gazprom for gas delivered between March and February. He also said Gazprom had expressed the willingness to discuss what he described as a "package solution."

His Russian counterpart, Alexander Novak said the talks would continue on Monday only if Gazprom actually receives the payment.

"Since the end of February not a single cent has been paid for gas supplied. That is the situation," Novak said.

Threat to cut supplies

Moscow and Kyiv have been at loggerheads over gas deliveries since the ouster of Kremlin-friendly Ukrainian President Viktor Yanukovych back in February. Russia raised the price it charges Ukraine for its gas by more than 80 percent and had threatened to cut off the supply next week if it didn't pay $5.17 billion by next Tuesday.

The gas dispute has caused great concern among European Union officials, as the bloc relies on Russia for around a quarter of its gas supplies and around half of this is delivered through Ukraine.

pfd/dr (AFP, dpa, AP)