Ukraine faces gas supply cuts as no deal is reached in row with Russia

Time is running out to a deadline but there is no solution in sight.

Last-ditch talks on Saturday failed to solve a gas dispute between Russia and Ukraine, with Moscow threatening to turn off the taps on Monday unless Kyiv pays nearly 2 billion dollars of debt.

The two sides met in the Ukrainian capital, accompanied by the European Energy Commissioner Guenther Oettinger. Halting deliveries to Kyiv could disrupt the flow to the EU, which receives gas via Ukraine.

Initial reports suggested a new round of eleventh-hour talks would be held later on Sunday but Gazprom spokesman Sergei Kupriyanov has said no new date has been fixed, according to Russia’s ITAR TASS news agency.

http://www.euronews.com/2014/06/15/ukraine-faces-gas-supply-cuts-as-no-deal-is-reached-in-row-with-russia/


Gas talks to resume

With the June 16 deadline looming, Ukrainian and Russian officials planned to meet on Sunday to find a solution for Kyiv's natural gas bill of more than $4 billion (2.95 billion euros).

Last minute attempts to negotiate have faltered in recent days with Russia threatening to stop its natural gas supply to Ukraine if the country doesn't pay nearly $2 billion of its debt by Monday. Curbing natural gas shipments to the Eastern European country could also disrupt the EU's supply, which flows through Ukraine.

On Friday, Kyiv said it was ready to accept a compromise price for Russian natural gas for the next 18 months. Russia rejected that proposal and also expressed an unwillingness to meet with Ukrainian officials again before the Monday deadline.

Both sides did, in fact, resume talks the next day, along with European Energy Commissioner Günther Oettinger, in Kyiv. However, they did not appear to make progress.

http://www.dw.de/ukraine-mourns-plane-victims-awaits-last-minute-gas-talks-with-russia/a-17708130

The figure of $268.50 mentioned was based on 2 conditions neither of which were met. The average price across Europe is c. $380 and there is no earthly reason why a figure should be less than that.