EU offers Ukraine to pay Russia $3.1bn to cover debtStaff writer ▼ | September 29, 2014
The European Union has proposed that Ukraine pay Russia $3.1 billion to cover its debt to Russia's gas giant Gazprom, European Energy Commissioner Gunther Oettinger said.
Helping hand IMF will support the deal
The energy commissioner added that Ukraine will also submit an additional payment of $1.1 billion to its Russian partners before the end of the year. Thus, Gazprom will receive a total of $3.1 billion from Ukraine by the end of 2014.
In June, Moscow introduced a prepayment system of gas deliveries to Ukraine due to Kiev's gas debt, estimated at $5.3 billion.
Russian Prime Minister Dmitry Medvedev stressed that Russia would only agree to a temporary price of $385 per cubic meter of gas for the period of negotiations between Russia's Gazprom and Ukraine's Naftogaz companies, and would resume cooperation on the issue only after the debt is paid.
Ukraine is not only a consumer, but also a transit country for Russian gas. Around half of Russian gas exported in 2013 crossed Ukraine, which amounts to approximately 15 percent of European consumption, according to the International Energy Agency. EU has repeatedly stressed an importance of trilateral talks on the issue in order to come to an agreement before winter comes. ■