Temporary gas price for Ukraine could be in range of $268-$385 until court decision - Prodan

Ukrainian Minister of Energy and the Coal Industry Yury Prodan told journalists Ukraine believed the temporary price for Russian gas could be the mean price of $268-$385 per 1,000 cubic meters of gas until the issue is resolved in the Stockholm International Arbitration Court.

Ukrainian Minister of Energy and the Coal Industry Yury Prodan told journalists Ukraine believed the temporary price for Russian gas could be the mean price of $268-$385 per 1,000 cubic meters of gas until the issue is resolved in the Stockholm International Arbitration Court.

He also said Ukraine still had time before Monday to decide if it would appeal to the court.

During a press conference, Prodan said that it was important to use a temporary price for gas until the price issue was resolved in Stockholm arbitration. "Then, naturally, it will be necessary to pay an additional amount up to the suggested price, and the European Commission has suggested a similar solution before, but Russia is not ready to make concessions," he said.

Asked if Ukraine's national oil and gas company Naftogaz Ukrainy would pay its uncontested debt before June 16, when an advance payment mechanism could be introduced, Prodan said: "We have already paid for uncontested debt."

He added that the decision of whether Naftogaz would pay Gazprom the $2 billion agreed upon in previous talks would depend on Russia's readiness to offer a discount on gas. This $2 billion includes $1.45 billion in gas for November-December 2013 and $500 million for part of April-May.

In addition, during a press conference following the latest round of gas talks on Wednesday, European Union Energy Commissioner Gunther Oettinger said it was necessary to understand that debts must be paid. He said this concerned the November-December 2013 debt and debt from the spring months, which are to be settled by the beginning of next week. Oettinger added that no one, including Ukraine, was denying how much gas was shipped or for which months.

He said that today's talks concerned what would happen in the future, how to avoid an advance payment system, and the risk of Russia stopping gas shipments.

All rights reserved by Rossiyskaya Gazeta.

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