Follow us on:   

Ukraine to halt gas imports from Russia
June 14, 2014, 5:27 am

Chairman of the board of the company "Naftogaz" Andrew Kobolev speaks during a news conference in Kiev, Ukraine, Friday, June 13, 2014 [AP]

Chairman of the board of the company “Naftogaz” Andrew Kobolev speaks during a news conference in Kiev, Ukraine, Friday, June 13, 2014 [AP]

Ukrainian Prime Minister Arseny Yatsenyuk has ordered a halt to natural gas imports from Russia from June 16 after the two countries failed to resolve their gas price dispute, the Ukrainian government said Friday.

“By its deliberate unilateral refusal to settle the conflict, Russia has been undermining the energy security of Ukraine and the European Union,” Yatsenyuk was quoted by the government press agency.

Yatsenyuk had also instructed the country’s Justice Ministry and state-run energy company Naftogaz to complete preparations to file a lawsuit with the Stockholm arbitration court over the dispute, the press service said in a statement.

Moreover, he asked the National Regulatory Commission to set “economically justified” tariffs for the transit of Russian gas through Ukrainian territory, it said.

Earlier in the day, Naftogaz Chairman Andrey Kobolev said Kiev was ready to compromise with Russia on gas issues, offering to pay a “compromise temporary price” of $326 per 1,000 cubic meters for Russian gas deliveries for the next 18 months.

Moscow currently charges Ukraine $485, but Kiev claims a fair price would be $268.

The two sides have been locked in dispute for three years over a 2009 contract, under which they agreed to tie the price of gas to the international spot price for oil.

Maenwhile, the Russian Foreign Ministry sent a note of protest to Ukraine over alleged border violation by Ukrainian soldiers, an official statement said Friday.

“The state border was violated by armed units, as an infantry fighting vehicles crossed the border. An attempt was made to defy Russian border guards’ orders,” Kremlin spokesman Dmitry Peskov said on Friday.

An infantry fighting vehicle of Ukrainian armed forces crossed the Russian state border in the Rostov region of southwestern Russia earlier in the day, according to the Itar-Tass news agency. Russian border guards detained the vehicle and its crewmen retreated. No arms was used and no casualties reported.

An investigation is underway although Kiev is yet to react to the Russian reports.

 

 Source: Agencies

2 Responses to Ukraine to halt gas imports from Russia

  1. Willem Post Reply

    June 14, 2014 at 11:28 pm

    In 2013, Gazprom sold 162.7 bcm of gas to Europe at an average price of about $387/1000 cm. Some east European countries pay somewhat less than $387/1000 cm, others somewhat more.

    NOTE: From the Russian border, via Ukraine, to the major hub in Baumgarten, Austria, 1,800 km, the transit fees total about $50/1000 cm. The 2013 average gas price of about $387/1000 cm Russia charges Europe includes the $50/1000 cm transit cost to that hub.

    Russia offered gas at a price of $385/1000 cm at the Russian border, which appears to be reasonable. Ukraine would like to pay less, but so would other countries.

    Russia invested a lot of money developing gas fields and piping systems to the Russian border. It needs to charge $385/1000 cm to pay its costs of exploration, production and O&M, and make a profit.

  2. Victor Reply

    June 15, 2014 at 12:20 pm

    yea right, coming from criminals its not exactly convincing.

    Also, when was its the right of the buyer to dictate terms of purchase? We must be living in the Nazi/gestapo world.

Leave a Reply

Your email address will not be published. Required fields are marked *

Anti-Spam * Time limit is exhausted. Please reload the CAPTCHA.