Russia Reached an Agreement with EU for Gas Dispute
Posted: 09/03/2014 03:09:27 Edited: 09/03/2014 03:09:27 Clicks: 874
On the meeting of Customs Union, Ukraine and EU which was ended not long ago, Putin, the Russian President and Poroshenko, the Ukrainian President agreed to restart negotiation for gas and energy as soon as possible. Recently, Novak, the Minister of the Russian Ministry of Energy held a meeting with Oettinger, the energy commissioner of EU for further negotiation in advance.
On the meeting, Russia reached an agreement with EU. Both two parties considered that they should find out some provisional measures for gas disputes in case of shorting of gas supply in this winter. On account of both parties are still devoting themselves to ensuring security of energy supply, there are not the risks that cut off gas supply to Europe existing. European Commission points out that Ukraine has the responsibility for Russia gas transmission crossing through smoothly. Meanwhile, Oettinger also states that Ukraine should repay all of debts in the next few months.
It is widely assumed that the coming winter makes Russia has more confidence in the negotiation. Recently, Yatsenyiuk, the Prime Minister of Ukraine admits that Ukraine still has gas supply gap in this winter and hopes to buy 5 billion cubic meters of gas from Gazprom at a provisional price of 360 dollars per thousand cubic meters. At present, Ukraine has already injected into about 150 billion cubic meters of gas into its underground gas storages. However, Russia considers that current gas reserves are still far from supporting Ukraine to overwinter smoothly. From October to the end of this year, Ukraine will still need to buy 10 billion cubic meters of gas to inject into its gas storages.
Analysts point out that reversing to buy gas from Hungary or Slovakia cannot offset Ukrainian gas gap in winter. On one hand, Hungary and other countries cannot reverse gas supply to Ukraine with full load for a short while. On the other hand, with the winter coming, Ukraine cannot afford the costs of reversing gas supply. In June, Ukraine had ever buy gas reversely at a price of 366 dollars per thousand cubic meters. Then, the spot gas price on gas trading of CEGH was only 267 dollars per thousand cubic meters. However, current spot gas in October has increased to 328 dollars per thousand cubic meters. Nevertheless, the cost that Neftegaz Ukrainy buys gas reversely in winter will be much higher than the final price of 380 dollars per thousand cubic meters quoted by Gazprom.
On the meeting, Russia reached an agreement with EU. Both two parties considered that they should find out some provisional measures for gas disputes in case of shorting of gas supply in this winter. On account of both parties are still devoting themselves to ensuring security of energy supply, there are not the risks that cut off gas supply to Europe existing. European Commission points out that Ukraine has the responsibility for Russia gas transmission crossing through smoothly. Meanwhile, Oettinger also states that Ukraine should repay all of debts in the next few months.
It is widely assumed that the coming winter makes Russia has more confidence in the negotiation. Recently, Yatsenyiuk, the Prime Minister of Ukraine admits that Ukraine still has gas supply gap in this winter and hopes to buy 5 billion cubic meters of gas from Gazprom at a provisional price of 360 dollars per thousand cubic meters. At present, Ukraine has already injected into about 150 billion cubic meters of gas into its underground gas storages. However, Russia considers that current gas reserves are still far from supporting Ukraine to overwinter smoothly. From October to the end of this year, Ukraine will still need to buy 10 billion cubic meters of gas to inject into its gas storages.
Analysts point out that reversing to buy gas from Hungary or Slovakia cannot offset Ukrainian gas gap in winter. On one hand, Hungary and other countries cannot reverse gas supply to Ukraine with full load for a short while. On the other hand, with the winter coming, Ukraine cannot afford the costs of reversing gas supply. In June, Ukraine had ever buy gas reversely at a price of 366 dollars per thousand cubic meters. Then, the spot gas price on gas trading of CEGH was only 267 dollars per thousand cubic meters. However, current spot gas in October has increased to 328 dollars per thousand cubic meters. Nevertheless, the cost that Neftegaz Ukrainy buys gas reversely in winter will be much higher than the final price of 380 dollars per thousand cubic meters quoted by Gazprom.
