Commodities, Emerging Markets, Energy

Russia Resumes Gas Deliveries To Ukraine After Six-Month Hiatus

Photo courtesy of Gazprom

Photo courtesy of Gazprom

Russian gas deliveries were received by Ukraine on Tuesday, with a total of 43.5 million cubic meters to be imported, according to a spokesman for Ukrtransgaz, Naftogaz’s transport subsidiary.

“On Tuesday Ukrtransgaz started importing natural gas from Russia. 43.5 million cubic meters of gas from Russia will be imported to meet the everyday needs of Ukrainian citizens,” company spokesman Maksim Bielawsky said.

Deliveries were initially planned to resume on December 11, but Naftogaz asked to begin receiving the gas earlier, TASS reports.

Kiev, which saw winter come early this year, has been burning through energy, making the need to reach out to Russia for natural gas, coal and electricity more pressing.

Gazprom confirmed Sunday that Ukraine’s gas importer, Naftogaz, has paid $378 million for 1 billion cubic meters of Russian gas for December delivery.

The taps have been turned off since June 16, when Gazprom ceased deliveries after Ukraine failed to pay its billion-dollar debt and simultaneously demanded a discount. The company instead put Kiev on a prepayment plan.

On November 5, energy-starved Ukraine paid off $1.45 billion of its gas debt, a precondition to resume deliveries. This was part of the so-called ‘Winter Gas Plan’ between Russia, Ukraine, and the European Commission to ensure gas would flow through Ukraine to Europe through the winter months and not be shut off over a gas dispute, as in 2006 and 2009.

Under the plan, Ukraine will be able to fulfill its gas needs through the end of March, but only as long as it pays for its gas up front at the price of $378 per 1,000 cubic meters.

Ukrainian arrears to Gazprom had piled up to over $5 billion when the company turned off supplies, and Ukraine is expected to repay $3.1 billion before the end of 2014.


Courtesy of RT

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow Us On Social Media

Google Translate

Like Us On Facebook

Our Discussion Groups

Facebook Group
LinkedIn Group

Follow EMerging Equity on WordPress.com

Our Social Media Readers

Digg
Feedly
Follow

Get every new post delivered to your Inbox.

Join 242 other followers

%d bloggers like this: