Updated 01:26 a.m. Moscow time.
BRUSSELS, October 21 (RIA Novosti) - Two temporary gas agreements are expected to be signed during the next round of trilateral gas talks between Russia, Ukraine and the European Union on October 29, EU Energy Commissioner Guenther Oettinger said.
“Relevant mandates must be received on the holding of the next trilateral meeting next Wednesday. It will also take place in Brussels and a decision must be made, and a relevant agreement must be signed, by all three sides," Oettinger said on Tuesday following trilateral gas talks in Brussels between Russia, Ukraine and the European Union.
“We are working on the drafts of protocols, which were created in Milan. We are working on two agreements. One agreement concerns two governments, two ministers, meaning it is a political agreement. The second agreement is related to the commercial side and concerns two general directors," he added.
According to the energy commissioner, Russia could supply four billion cubic meters of gas to Ukraine at $385 per 1,000 cubic meters on prepayment conditions.
He stated that Ukraine’s national oil and gas company Naftogaz is ready to pay off $3.1 billion of its gas debt to Russia in two tranche before year’s end. The first tranche of $1.45 billion is to be paid by the end of October, while the second of $1.65 billion must be paid by year’s end.
“[The European Commission] suggested the following thing: if Naftogaz is not able to pay, a European company may pay for this gas instead and then re-sell it to Naftogaz,” Oettinger said.
In June, Russian energy giant Gazprom switched Ukraine to a prepayment system for gas deliveries in light of its gas debt of more than $5 billion.
During a ministerial meeting in September, Moscow and the European Commission proposed a so-called winter package, a deal that would seek Ukraine pay $3.1 billion of its debt to Russia by the end of the year in exchange for gas deliveries during winter months at $385 per 1,000 cubic meters.
On October 13, Russia said it was ready to offer Ukraine a more flexible schedule for the debt repayment, according to which Kiev should pay $1.45 billion in the first installment of $3.1 billion, with the rest of the debt to be paid by the year-end. However, Ukraine refused to make any advanced payment for Russian gas supplies, insisting that payments be made upon delivery.
Last week, Russian and Ukrainian leaders met on the sidelines of the Asia-Europe Meeting (ASEM) forum in Milan. According to the Russian Energy Ministry, the sides then reached a preliminary agreement on Kiev's payment of its gas debt to Russia.
