No progress between Ukraine, Russia gas deal

27 May 2014 13:07
(QHA) -

Ukraine's state gas company Naftogaz said on Tuesday no real progress was made with Russia's Gazprom over its gas debt or on price in talks in, Reuters reports.

Moscow demands Ukraine to pay its debts in two tranches, in particular, USD 2 billion until May 29 and another USD 500 million by June 7, Russian Energy Minister Alexander Novak announced.

“If the payment comes by this Friday, we will be ready to continue negotiations on setting a price for further supplies of gas to Ukraine,” he noted.

Ukraine wants to change the conditions of a 2009 contract that locked Kiev into buying a set volume of gas, whether it needs it or not, at $485 per 1,000 cubic meters - the highest price paid by any client in Europe.

Ukraine insists on a price of $268.50 per 1,000 cubic meters while Russia stands by its demand for $485.

Gazprom CEO Alexei Miller told Rossiya-24 television late on Monday the company was ready to provide a discount on the gas price for Ukraine but only after Kiev paid at least part of its debt.

Moscow says Ukraine's total gas debt stands at $3.5 billion and will switch to pre-payment for June, promising to deliver as much gas as it was paid for.