• 1 hour Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 3 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 7 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 7 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 7 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
Are Combustion Engines Reaching Peak Demand?

Are Combustion Engines Reaching Peak Demand?

As countries announce plans to…

OPEC Seeks Help From U.S. Shale

OPEC Seeks Help From U.S. Shale

OPEC’s secretary general has asked…

EU’s Oettinger Sees Ukraine, Russia Resolving Differences Quickly

EU’s Oettinger Sees Ukraine, Russia Resolving Differences Quickly

Guenther Oettenger, the EU’s energy commissioner, says he expects Ukraine and Russia soon can resolve their differences over gas.

Oettinger told reporters on May 27 in the Czech capital of Prague that during talks he attended the previous day in Berlin, the two countries had made additional progress over settling the dispute between Kiev and Russia’s government-controlled gas company, Gazprom.

The EU commissioner also said both sides seemed more accepting of his own proposal that by May 29, Ukraine pay $2 billion of the amount it already owes to Gazprom for gas delivered from November 2013 through March 2014. "I am quite optimistic we can solve all open questions and problems in the next few days," he said.

Oettinger said the progress he’s witnessed also could lead to new talks on the cost of future deliveries of Gazprom gas.

The $2 billion payment of arrears on May 29 would only be “partial payments of the outstanding bills” for Gazprom deliveries from November through March, the EU said in a statement on May 26.

Nevertheless, Oettinger said the payment would be “a clear signal of [Ukraine’s] creditworthiness.” This would lead Russia to attend new talks with Ukraine in Berlin, brokered by the EU, to negotiate the price that Naftogaz must pay Gazprom for deliveries in April, May and in future months.

Next, on June 7, the commissioner said, Naftogaz would pay Gazprom $500 million more, keeping gas flowing into Ukraine – and to the rest of Europe.

Related Article: Ukraine: The Real Energy Crisis Starts in June

Despite Oettinger’s optimism, Ukraine’s energy minister, Yuri Prodan, was more cautious, though he didn’t rule out an eventual agreement. “So far there is not yet a decision taken, and I also assume that from the Russian party no decision has been taken yet,” he said. Prodan described the scenario that Oettinger outlined as merely “a suggestion.”

According to Gazprom, Ukraine owes it $3.5 billion, and the Russian gas company says it will stop deliveries of gas to Ukraine in June unless it pays for it in advance, not in arrears, as has been the practice to date. This could be disastrous for much of the rest of Europe, which gets most of its gas from Russia via Ukraine.

Ukraine says the crisis was engineered by Russia. Gazprom gave Naftogaz a discount on gas while Viktor Yanukovych, who was close to Moscow, was president of Ukraine. Yanukovych fled to Russia in February in the face of street protests opposing his decision against closer ties with the EU and chose to align his government with Russia.

Gazprom promptly raised the price of gas by 80 percent and left Ukraine with crushing gas debt.

By Andy Tully of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • Arkady on May 29 2014 said:
    Dear Gentleman,

    do you know that Yuri Prodan and Yulia Timoshenko did signed the gas contract with Russia.And Mr. Turchinov advertised this contract like panacea for Ukraine! All of them were happy with the terms and prices for the gas then?! They must be happy to meet the same terms and
    same prices now! I can not understand they unhappines!
    May be you can explain to readers the situation? I am afraid, American readers do not know the history Russian- Ukraine Gas Contract!

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News