Updated 11:06 p.m. Moscow Time
MILAN, October 17 (RIA Novosti) – Russia and Ukraine agreed on the conditions of resuming gas deliveries, Russian President Vladimir Putin said Friday.
"Yes, indeed, we have discussed in detail these issues and made some progress. What kind of progress? We have agreed with our Ukrainian partners on the conditions of resuming gas deliveries to Ukraine at least during the winter season, and agreed on all the details of this deal, but the problem with cash shortage of Ukraine's Naftogaz remains," Putin told journalists after the meeting with Ukrainian President Petro Poroshenko in Milan.
In June, Russian energy giant Gazprom switched Ukraine to the prepayment system for gas supplies due to Ukraine's gas debt of more than $5 billion.
In September, during ministerial talks in Berlin, Russia and the European Commission proposed the so-called winter package. According to the package, Ukraine should pay off $3.1 billion of its debt by the end of 2014 in exchange for gas supplies in winter. Russia also insisted that Ukraine pay the first tranche of $2 billion before the start of the deliveries.
On October 13, Russia said it was ready to offer Ukraine a more flexible schedule for the repayment of the debt. The schedule saw Kiev paying $1.45 billion in the first installment of $3.1 billion, with the rest of the debt being paid by the year-end.
The same day, Ukrainian Energy Minister Yuriy Prodan said Ukraine was not willing to make any advanced payments for Russian gas supplies, insisting that payments should be made upon delivery.