Russia resumes gas supplies to Ukraine, although Kyiv has not paid and does not recognize all debts

Brussels - Kyiv, October 31 (PolitNavigator, Mikhail Ryabov) - In Brussels, representatives of Russia, Ukraine and the EU signed a temporary agreement on gas supplies, which will be valid from November to March 2015.

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EU representative Günther Oettinger said that Ukraine will receive assistance from the IMF and the European Union, which will allow it to repay its debts to Russia ($3,1 billion) in two tranches by the end of this year.

“We were able to control our emotions and secure energy supplies,” he said, acknowledging that the situation was “very tense.”

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Russian Energy Minister Alexander Novak clarified that Ukraine is repaying only part of the debt accumulated from November 2013 to June 2014 - in total it amounts to $5,3 billion (Here it should be clarified that Kiev does not recognize this amount of debt, which was announced today Arseniy Yatsenyuk, insisting that Ukraine will repay its debts at the gas price that it considers “fair”).

In addition, Novak said that in November-December Ukraine intends to purchase 4 billion cubic meters of gas on an advance payment basis and confirmed the availability of money for these needs.

“In accordance with the current contract, the Russian Federation will provide a discount of $100 during the period from November to March. For these purposes, a decision will be made by the Government of the Russian Federation. This will allow the price to be approximately 378 per thousand cubic meters,” the official said.

Novak emphasized that the 2009 contracts, which Kyiv is challenging in court, are still in effect.

In turn, Ukrainian Energy Minister Yuriy Prodan emphasized that the agreement signed in Brussels is temporary, since Kyiv will continue to challenge the contract with Russia. “The final resolution of this conflict will come after the decision of the arbitration court,” the minister said.

According to the official, in 2015 the price of gas should drop to $365 per thousand cubic meters, as it is tied to the cost of oil. Prodan confirmed that gas purchases will be carried out with the help of the EU.