Ukraine, Russia Fail to Agree Resumption of Gas Deliveries

© AP Photo / Sergei ChuzavkovUkrainian worker operates a valve at a gas storage point in Bil 'che-Volicko-Ugerske underground gas storage facilities in Strij, outside Lviv, Ukraine
Ukrainian worker operates a valve at a gas storage point in Bil 'che-Volicko-Ugerske underground gas storage facilities in Strij, outside Lviv, Ukraine - Sputnik International
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Kiev and Moscow failed to agree the resumption of Russian gas deliveries to Ukraine during a trilateral EU-Russia-Ukraine meeting in Brussels on Friday, Ukraine's Naftogaz state energy company said.

KIEV (Sputnik) — Ukraine is a key country for transit of Russian gas to Europe. However, for years Russia and Ukraine have been engaged in gas disputes. In June 2014, Gazprom switched Ukraine to a prepayment system for gas supplies citing its massive gas debt. Ukraine’s Naftogaz appealed to the Arbitration Court in Stockholm, seeking a retroactive revision of its 2009-2019 natural gas transit contract with Russia.

In October 2015, Naftogaz said it would not buy gas from Gazprom due to high prices. Ukraine said it had other suppliers in Europe and would only resume purchases if Russian prices were below EU prices, while Russia said it halted deliveries when Ukraine failed to pay.

Europe intervened in the dispute late in 2015 to mediate the so-called winter gas package for the peak season in 2015-2016 at trilateral talks. A 2016-2017 winter package has not been agreed on despite the onset of the cold season.

"We did not reach an agreement. It is well known that we insists on signing an additional agreement, which would eliminate crucial risks for Ukraine," Naftogaz said in a statement in its Facebook blog.

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