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Since relations broke down over Russia's annexation of Crimea
and support for pro-Russian separatism, Ukraine has relied on
gas from storage and reverse flow purchases from EU neighbors.
Russian Energy Minister Alexander Novak and his Ukrainian
counterpart Ihor Nasalyk met in talks hosted by the European
Commission's energy chief Maros Sefcovic, who is seeking to
guarantee winter gas transits to Europe via Ukraine.
The 28-nation bloc relies on Russia for about a third of its
gas, most of it flowing through pipelines across Ukraine. Gas
pricing disputes disrupted deliveries in 2006 and 2009 - causing
painful shortages in freezing weather in some EU nations.
Concerns over new supply cuts in Europe have grown. But EU
sources were skeptical over a deal being brokered on Friday.
Ukraine's state energy company Naftogaz said on Thursday it had
13.2 billion cubic meters (bcm) of gas in storage and was buying
around 55 million cubic meters per day from EU neighbors to its
west.
"It's enough gas to see us through to the end of winter,"
Naftogaz CEO Andriy Kobolyev told journalists in Brussels.
Ukraine has exhausted funds from a European Bank for
Reconstruction and Development (EBRD) loan to buy 1.8 bcm of gas
from six European firms this year, he said, but can still draw
on a $500 million World Bank loan.
Gazprom and Naftogaz have taken their dispute over gas contracts
running through 2019 to an international arbitration court in
Stockholm, each claiming about 30 billion dollars.
Ukraine wants to amend the long-term contract over gas purchases
and transits, saying some elements run counter to Ukrainian and
EU anti-trust law.
A ruling on the gas supply terms is expected by April, Kobolyev
said, and on transit terms in the second quarter.
Until then, discussions hosted by the EU are limited to terms on
pricing and volumes for winter gas supplies, based on prepayment
by Ukraine.
The talks this winter are taking place some weeks later than two
previous rounds of discussions. EU sources said Russia had
delayed talks as it waited for a decision by the Commission,
allowing it to pump more gas via the Opal pipeline link to
Germany, which bypasses Ukraine.
Ukraine has protested vehemently against the decision.
(Reporting by Alissa de Carbonnel; Editing by Ruth Pitchford)
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