EC to Finance Ukraine's Winter Gas Purchase for Ongoing Demands

The European Commission will finance Ukraine’s natural gas purchases from Russia for current consumption in the coming winter months, Russian Energy Minister Alexander Novak said Friday.

BRUSSELS (Sputnik) – “The European Commission will also continue to provide [Ukraine’s] ongoing funding in the winter period because for its safe passage, as you know, Ukraine not only needs to store gas, but purchase current volumes to meet its domestic needs,” Novak said.

Kiev’s gas purchases to meet real-time demands will also ensure the reliable transit of Russia’s natural gas to Europe, the Russian energy minister said after initialing a winter package gas delivery protocol.

Novak initialed the protocol, in which Ukraine committed to buying 2 billion cubic meters of Russian gas for storage next month, with his Ukrainian counterpart and the European Commission vice president in charge of the energy union.

A statement published by the European Commission after the post-initial press conference in Brussels classified the winter package protocol, sent to Moscow and Kiev for respective government confirmation, as “binding.”

It said Brussels will provide at least $500 million by the end of 2015 to assist Ukraine in purchasing the needed gas for the winter period.

Ukraine has not bought natural gas from Russia since July, citing its dissatisfaction with the offered discounted price. Russian Prime Minister Dmitry Medvedev decreed earlier to charge Ukraine $227.35 per 1,000 cubic meters of gas in the upcoming three months instead of $252.