Ukraine to buy Russian gas at $378/1,000 cubic meters in Q4 2014, $365/1,000 cubic meters in Q1 2015 - Yatsenyuk

Ukraine will receive Russian gas on "winter package" terms at $378 per 1,000 cubic meters in the 4th quarter of 2014 and at $365 per 1,000 cubic meters in the 1st quarter of 2015, Ukrainian Prime Minister Arseniy Yatsenyuk said.

Ukraine will receive Russian gas on "winter package" terms at $378 per 1,000 cubic meters in the 4th quarter of 2014 and at $365 per 1,000 cubic meters in the 1st quarter of 2015, Ukrainian Prime Minister Arseniy Yatsenyuk said.

"We have arrived at an understanding that the price will be determined based on a formula set in the contract itself. The price for oil, which has dropped significantly, affects this formula. This means that the price will be $378 per 1,000 cubic meters in the last quarter of this year and $365 per 1,000 cubic meters in the first quarter of next year," Yatsenyuk said at a government meeting in Kyiv on Thursday.

 

The EU will act as a guarantor that Russia will not unilaterally increase the gas price for Ukraine within the "winter package" framework, he said.

 

"If Russia violates the pricing terms and again tries to set the price at $500 per 1,000 cubic meters, as it proposed originally, the European Commission and we have reached an agreement that the European Commission will act as a guarantor of Russia's obligations on the fair price, including through a mechanism of compensation for a higher price if such a price does not meet the trilateral protocol," he said.

 

The "winter package" is supposed to remain in effect for half a year.

 

Yatsenyuk insisted also that the gas shipped to Ukraine earlier will be paid for at $268 per 1,000 cubic meters, whatever price Gazprom might charge.

 

"Ukraine's position is that we can pay for the overall amount of gas at a price of $268 per 1,000 cubic meters," Yatsenyuk said at a government meeting on Thursday. Ukraine has $3.1 billion on its accounts earmarked for this purpose as financial aid from the International Monetary Fund (IMF) and the European Union, he said.

 

"Ukraine has all the necessary funds for this purpose to completely cover the bills for natural gas shipped previously," Yatsenyuk said.

 

"The first payment tranche […] of $1.45 billion will be made within the shortest possible time, immediately after the protocol is signed, and the rest of $1.65 billion will be made by the end of this year," he said.

 

Ukraine will be buying new gas on a pre-payment basis.

Read more: New stumbling block emerges in Russia-Ukraine gas dispute

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