MOSCOW, October 31 (RIA Novosti) – Russia is prepared to grant Ukraine a $100 discount on gas per 1,000 cubic meters according to the so-called Winter Package within the next few days, Russian Energy Minister Alexander Novak said Friday in a televised interview.
“Our position is that the price is formulated according to the current contract and the current contract contains the possibility of discounts if the Russian government decides to lower export taxes. The project for this decision is ready, the Russian side is ready to allot the given [$100] discount within the next few days,” Novak said on Rossiya-24 television.
Russian gas giant Gazprom and Ukraine’s Naftogaz will return to stable dialogue and by March they could be ready to solve issues on gas deliveries after April, Russian Energy Minister Alexander Novak said Friday during a televised interview.
“Our companies of Naftogaz and Gazprom will return to dialogue. I think that today’s decision will allow them to continue a stable dialogue since a constructive [approach] as well as compromises have been found. By March, I believe, our companies will continue their dialogue and some sort of new concrete solutions for the beginning of April for gas deliveries will be prepared,” Novak announced.
The standoff between the two energy companies intensified in June, when Gazprom switched Ukraine to a prepayment system for gas supplies over its debt of more than $5 billion. Following the move, Naftogaz turned to the Stockholm arbitration court requesting a review its gas contract with Gazprom. Gazprom in turn filed a lawsuit against Naftogaz with the same court seeking to recover its debt.
Earlier on Friday, Russian energy giant Gazprom CEO Alexei Miller said that gas price will stand at around $460 to $470 per 1,000 cubic meters after the winter period covered by the agreement ends, unless the sides agree on a new discount.
After months of talks, Russia, Ukraine and the European Union signed a temporary agreement Thursday for the delivery of gas during the winter period. Gazprom and Naftogaz also signed an addendum to the contract, securing conditions for gas deliveries until March. The agreement stipulates that Russia resume gas supplies to Ukraine, following a three-month break in deliveries caused by Kiev's massive gas debt in excess of $5 billion. In its turn, Ukraine agreed to pay $3.1 billion of its gas debt to Russia in two tranches before the end of the year, with the first tranche of $1.451 billion being transferred immediately.
