EU, Russia, Ukraine hold trilateral gas talks

A trilateral gas meeting between the EU, Russia, and Ukraine was held in Brussels late Tuesday to discuss ways to secure gas supplies to Europe and the Ukraine during the winter season.
Speaking to reporters after the meeting last night, EU energy Commissioner Gunther Oettinger said Ukraine would settle its outstanding debts to Russia based on a preliminary price of USD 268.5 per thousand cubic meters by making payments in two tranches: USD 1.45 billion by the end of October and USD 1,65 billion by the end of the year.
For new supplies Ukraine will pay USD 385/ 1,000m3 for gas to be delivered this winter. The exact volume has not been agreed yet. Russia will deliver the gas following advanced, monthly payments by Ukraine, he noted. Oettinger said a new round of trilateral talks is envisaged for next week, 29 October in Brussels.
He added that both Ukraine and Russia have referred the dispute to the international arbitration court in Stockholm and a final decision on the price and the debt is only expected next year.
On his part, Russian energy ministers Alexander Novak told reporters that the outstanding gas debt owed by Ukraine to Russia is USD 5.3 billion .
"It is confirmed that USD 3.1 billion will be paid this year and USD 1.45 billion will be paid in October before current gas deliveries," he said.
Ukrainian energy minister Yuri Prodan said " we are working towards a compromise and we are prepared to continue to work towards this compromise. There is a confirmation of our possibilities and perhaps additional guarantees from the EU. We are prepared to compromise if this contributes to the resolution of the situation."