Support The Moscow Times!

Russia-Ukraine Gas Talks Fall Apart with No Agreement on Pricing Plan

An employee passes near valves and pipes at a gas compressor station in the village of Boyarka, Ukraine.

VIENNA — Gas supply talks between Russia and Ukraine fell apart on Tuesday after energy officials were unable to agree on a pricing plan for the next quarter.

Representatives from Moscow, Kiev and the European Commission were meeting in Vienna to discuss gas supplies to Ukraine on the day the current “winter package” deal expires.

"Unfortunately, the Ukrainian side said that the level of discount which was offered by the Russian Federation was not enough," Russian Energy Minister Alexander Novak told reporters.

Russia on Monday proposed to keep gas prices for Ukraine unchanged from the second quarter, at $247 per 1,000 cubic meters and gas discount at around $40.

But Novak said the Ukrainian delegation had asked for a discount of at least 30 percent while Russia would not provide a markdown of more than $40.

Ukrainian state energy firm Naftogaz said it would stop buying gas from Russia from July 1 until new supply conditions were agreed but that transit supplies to Europe would not be affected by the decision.

Europe gets around a third of its gas from Russia and around half of that comes via Ukraine. Relations over the supply route have become increasingly tense since Russia annexed Ukraine's Crimea peninsula in March last year, prompting the European Union to impose sanctions on Russia.

"The Ukrainian side has no reason to suspend gas purchases because the offered price ... is absolutely competitive," Novak was reported as saying by RIA news agency. "It can only be a political (decision)," he said.

Ukraine's Energy and Coal Minister Vladimir Demchishin said Ukraine would buy gas from other sources and that the next round of talks with Russia would be in September.

"We definitely do not want to prolong this until the start of the heating season, we do not plan to drag this out until October," he said.

The European Commission, which has mediated the gas pricing dispute between Moscow and Kiev for more than a year, said it would help prepare further negotiations.

"As the meeting has shown today, the parties are still far apart," European Vice President Maros Sefcovic said in a statement.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more