28 May 2014 18:38

Oettinger suggesting Ukraine pay half of debt for Russian gas

BRUSSELS. May 28 (Interfax) - Ukraine, as an EU partner and member of the European Energy Community (EEC), needs the EU's support in the issue of gas supply since gas plays a key role in the country's stabilization, European Energy Commissioner Gunther Oettinger said.

"The question remains of paying the gas bills. If Russia is not going to ship gas to Ukraine anymore and only ship gas to the EU with transit through Ukraine, a number of questions can be asked relating to the amount of gas that will end up in Poland, Slovakia and Hungary; that is, whether Russian gas shipments will make it to Europe's territory," he said at a press conference in Brussels on Wednesday.

"We have an absolutely clear interest in this conflict being resolved as fast as possible," Oettinger said, adding that the gas bills must be paid, but prices must also be fair.

He said Ukraine wants the issue surrounding the price to be determined before the debt it paid, and Russia wants to discuss the price only after at least part of the debt it paid.

"Ukraine wants to discuss prices that are in line with the Market. And we completely agree with this approach. In our opinion, it is absolutely necessary for the price set for Ukraine to correspond to market prices. From November up to today, it's been clear that Gazprom has presented the bills for supplied gas, but payment has not occurred. The amounts are growing, and they have currently reached $4 billion," Oettinger said.

"We are suggesting that 50% of the debt be paid - that is, $2 billion - and hold further talks with the EU as an intermediary in order to reach an agreement for future prices. As soon as the prices are agreed upon, the remaining debt could be paid. We believe that this is an honest approach. Our Russian partners will then be able to name a price that we could discuss," he said.

"I think that if there is not partial payment, if the accounts for previously shipped gas are not paid, [then] it will be difficult for Ukraine to maintain its position," Oettinger said.