Germany calculated Ukraine’s price on gas for the winter

Germany calculated how much a new gas contract with Russia will cost Ukraine. According to the document of the German Government following the meeting of the European Council of June 8, which has been made public yesterday by Reuters, it is planned that the new winter contract on gas for Ukraine will cost about 1.5 billion dollars.

“The amount of gas stored in Ukraine is not sufficient to ensure full supply for the next winter,” said Maros Sefcovic, Vice-President of European Commission.

Energy Minister of Ukraine Volodymyr Demchyshyn had said earlier that trilateral gas talks between EU, Ukraine, and Russia’s ministers will be held next Monday, June 29.

The Minister asserted that Ukraine perceives an extension of the “winter gas package” as appropriate to at least until March 2016. In his opinion, Russian side should be interested in a fast compromise, because delays would have no benefit for them.

Ivan NADEIN, head of the Committee for Energy Independence of Ukraine:

“Today we have about 11 billion cubic meters of gas in our storage. The last season we used as much as 17 billion cubic meters. Obviously, we lack a bit of gas. In Brussels, during the signing of the last ‘winter package’ we were promised a financial support in case Russia would not fulfill its obligations. Today we can safely count on the support of Europeans and should use this help. After all, stable gas storage and transit in Ukraine is also in the interest of Europeans.

“The sum indicated by the German Government is enough to provide for those 6 billion cubic meters of gas, which we now lack to safely meet the new heating season.

“I think the future gas negotiations will not address any strategic issues. We have already seen the value of such agreements. Everyone is just waiting the Stockholm arbitration, which would solve the disputes regarding the purchase and transit of gas. For now, the Russians would not want to change anything by themselves. So, we have to take the funds from the EU and buy the gas for winter and then minimize the cost as much as we can. According to some preliminary statements from the Russian side, they are ready to give us a third of the hundred dollar discount. That’s good, because the price on gas market also goes down. We see that Russia is once again trying to put pressure on Ukraine and Europe. And the results of these negotiations would either be a cheap gas for Ukraine or the change in strategic priorities – but I doubt we would be able to do the latter next week.”