Wednesday, October 8, 2014

Gazprom Plays Hardball as EU Support for Ukraine Falters - Russia Insider

Gazprom refused to soften its position in the latest round of trilateral talks between the EU, Gazprom and Ukraine to resolve the gas dispute.

Instead Gazprom just stuck to the offer it made back in June.

The offer remains $385 per 1,000 cubic meters for 6 months. This is the same price it offered to go down to in June when Ukraine rejected it. Technically the offer is a discount of $100 per 1,000 cubic meters. The contractual price remains $485 per 1,000 cubic meters. At the end of the 6 month period the $100 per 1,000 cubic meters discount ends and the price reverts to the full contractual price of $485 per 1,000 cubic meters.

What has changed since June is that the EU now seems to be backing Gazprom’s offer.

Under the deal proposed Ukraine in return for the discount must pay down its debt to Gazprom by at least $2 billion by no later than October and by $3.1 billion by the end of the year. This in addition to its prepayments at the discounted price of $385 per 1,000 cubic meters for gas actually received.

Complete story at - Gazprom Plays Hardball as EU Support for Ukraine Falters - Russia Insider

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