Ukraine - Living without Russian gas: Hard, but possible.

Since Russia’s Gazprom cut the gas supplies to Ukraine on June 16, government has been intensively looking for the energy model which would be based on full independence from Russian blue fuel. Energy experts thinks Ukraine may succeed in this.

Simon Pirani, research fellow at the Oxford Institute for Energy Studies, sees that 32 billion cubic meters of Ukraine’s consumption could be accommodated by domestic production, which stood at 20 billion cubic meters last year. Another 14 billion cubic meters can come through a reverse flow from the European Union, while energy efficiency could contribute by cutting the consumption by as much as 3 billion cubic meters.

Doing the math, this should cover country’s annual needs in natural gas. Prime Minister Arseniy Yatsenyuk would be happy to hear this as he gave several orders to the Cabinet to prepare for the heating season without any reliance on Russian supplies.

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Pirani of Oxford Institute for Energy Studies thinks fair price for the Russian gas should not exceed $302 per thousand cubic meters, while Gazprom is offering $385. Everything depends on the ruling of the Stockholm arbitration court, where Naftogaz and Gazprom are suing each other over the validity of the 2009 gas contract and whether the pricing scheme therein is legitimate.

http://www.kyivpost.com/content/business/living-without-russian-gas-hard-but-possible-353515.html

EU and Ukrainian officials to discuss revival of tripartite talks with Russia and reverse gas issue in Brussels on Wednesday

EU Energy Commissioner Guenther Oettinger and the Verkhovna Rada appointed Minister of Energy and Coal Industry of Ukraine Yuriy Prodan will discuss today in Brussels the issues of reverse gas through Slovakia and the prospects for the renewal of tripartite negotiations between Moscow, Kiev and Brussels. No concrete decisions are expected to be made during the closed meeing of the officials, the press service of the European Commission told Itar-Tass .

"The meeting is of a technical nature and will be held behind closed doors," said the representative of the EC.

According to ITAR-TASS sources, Ukraine expects to discuss the possibility of expanding reverse gas supplies from Slovakia. The European Commission intends to explore the possibility of resuming in mid-July the tripartite talks between Russia-Ukraine-EU on gas prices and Kiev debt. EC had previously reported that the maximum amount of the Slovak reverse gas may be about 8 billion cubic meters of gas per year. The price of this gas has not been confirmed yet.

Tripartite negotiations, started on May 2 in Warsaw, were interrupted on June 16, because of disagreement between Ukraine and the Russian Federation on a mutually acceptable price for gas and Kiev gas debt repayment. "Naftogaz" has fully repaid the debt for the period from January to March 2014, but did not paid 1.454 billion US dollars for November-December 2013 period, and have been missing payments since April. By reference to the gas price, effective since April 1 (485.5 dollars per thousand cubic meters), only for April and May Ukrainian debt is about 3 billion US dollars. "Naftogaz" refused to pay it, challenging the validity of this price.

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During the tripartite talks, "Gazprom" has settled on a compromise and agreed to receive payments from "Naftogaz" for April and May deliveries, basing on the price, offered to Ukraine from June 1 (of 384.86 US dollars per thousand cubic meters). The head of "Gazprom", Alexei Miller said that the price is fair and was supported by the EC. He noted that it corresponds to the recommendations of the International Monetary Fund for Ukraine.

Read more: http://voiceofrussia.com/news/2014_06_25/EU-and-Ukrainian-officials-to-discuss-revival-of-tripartite-talks-with-Russia-and-reverse-gas-issue-in-Brussels-on-Wednesday-2862/