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Ukraine gets brief gas break from Gazprom

KIEV, Ukraine, Dec. 4 (UPI) — The director of Ukraine’s national energy company Naftogaz said Russian natural gas company Gazprom agreed to a delay in the repayment of gas debts. Naftogaz Chief Executive Officer Yevgeny Bakulin said his company reached an agreement with Gazprom to defer natural gas payments for winter fuel deliveries until early 2014 because of “problems” in the region, Russia’s state news agency RIA Novosti reported Tuesday. Gazprom in October expressed concern with Ukraine when it hadn’t yet settled an $882 million bill for August natural gas deliveries. Bakulin said some of the outstanding debt had been settled and Gazprom should consider that when making future decisions about gas deliveries to Ukraine. Gazprom, most recently in 2009, cut gas supplies to Ukraine because of outstanding debt. That left downstream consumers in Europe with a gas shortage because the bulk of their gas supplies from Russia run […]

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Ukraine, Gazprom make amends

KIEV, Ukraine, Nov. 19 (UPI) — Ukrainian Energy Minister Eduard Stavytsky said a deal was reached with Russian energy company Gazprom that may avert a winter gas crisis. Gazprom in 2009 cut gas supplies to Ukraine following contractual disputes over payments. In early November, Gazprom said Ukraine had more than $880 million in unsettled debt from its August natural gas bills, sparking fears of another gas spat. Stavytsky said Monday both sides reached an agreement that may stave off another payment row. “We have reached a compromise that will allow Ukraine to timely pay for the natural resources that we receive under the new schedule that has been signed, and meet the needs of all of our partners — on behalf of the supplier of gas — Gazprom and on behalf of the transit [country],” he was quoted by the National News Agency of Ukraine as saying. The minister […]

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EU, Ukraine Close In on Natural-Gas Deal

The European Union is closing in on a deal that would allow Ukraine to get natural gas from sources to the West rather than from Russia, people familiar with the matter said. Such a move could ease the way for the former Soviet republic to pursue closer economic links with Europe, despite threats of retaliation from the Kremlin. The prospective natural gas deal comes 10 days before leaders of the 28-nation EU and its eastern neighbors meet in Vilnius, Lithuania. The centerpiece of the summit is intended to be a sweeping trade and political deal between Brussels and Kiev, but the signing has been in doubt because of a number of issues, including the fate of the jailed former prime minister Yulia Tymoshenko. Ukraine’s parliament meets again Tuesday to consider a solution to the EU’s demand that she be freed and allowed to go abroad for medical treatment. Meanwhile, […]

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Gazprom Raises Concerns Over Gas Transit to Europe via Ukraine

By James Marson MOSCOW–Ukraine is taking gas from its underground storages, which could have a “negative effect” on gas transit to Europe, a senior executive from Russian state gas firm OAO Gazprom (GAZP.RS) said Thursday. Ukraine said this week that it stopped taking gas from Gazprom at the start of November as it had sufficient supplies until the end of the year. “That means domestic production and underground storages are used to provide for the needs of the domestic market,” said Pavel Oderov, head of Gazprom’s International Business Department. He said gas reserves in storage are needed to ensure gas transit to Europe. Russia accounts for one-quarter of Europe’s gas needs, the bulk of which flows via Ukraine. Supplies to Europe were disrupted in 2006 and 2009 amid price and contract disputes between Ukraine and Russia. Ukraine owes $1.3 billion for gas deliveries, and Gazprom is considering granting an […]

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Ukrainian natural gas demand slumps

KIEV, Ukraine, Nov. 13 (UPI) — Ukrainian Energy Minister Eduard Stavytsky said Wednesday his country needed less natural gas than expected because of lower demand. Stavytsky said Ukrainian energy company Naftogaz has enough gas on hand to keep domestic needs satisfied through the end of the year without imports from Russia. “The demand for gas is almost 45 percent lower than Naftogaz had planned,” RIA Novosti quoted him as saying. The Russian news agency said he attributed the lower demand to warmer weather in Ukraine. Naftogaz said it secured 113 billion cubic feet of natural gas from Russian energy company Gazprom in October and has stopped the gas imports for the rest of the year. Contractual disputes between Ukraine and Gazprom prompted Russia in 2009 to cut off natural gas supplies and Ukraine says it’s paying more for Russian gas than its regional counterparts under the terms of a […]

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Shell to Drill First Wells in $10 Billion Ukrainian Project

Royal Dutch Shell Plc (RDSA) , which signed a $10 billion shale gas deal with the Ukrainian government this year, expects to start drilling in the Yuzivska field next year. Shell will need to drill as many as 15 wells to complete the initial exploration appraisal of the 8,000 square-kilometer (3,100 square-mile) Yuzivska field in the eastern part of the country, Graham Tiley, the country manager of Shell Ukraine , said in an interview in Kiev On Nov. 6. Separately, the company has also completed drilling its first well in the Kharkiv region and is preparing to drill two more next year, he said. Ukraine, which depends on expensive Russian gas imports to cover more than 60 percent of its consumption, is pushing to develop its own reserves, both onshore and offshore, in the Black Sea . The government signed a production-sharing agreement with Chevron Corp. (CVX) yesterday for […]

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Gazprom: Ukraine short on paying off debt

MOSCOW, Nov. 6 (UPI) — It’s too early to declare a thaw in the natural gas relationship between Russia and Ukraine, a spokesman from Russian gas company Gazprom said. Alexei Miller , chief executive officer at Gazprom, said last week Ukraine has more than $880 million in unsettled debt from its August natural gas bills. Sergei Kupriyanov , a Gazprom spokesman, said Kiev has a long way to go before settling its obligations. “We have received several small installments for gas supplies in August, but it’s too early to speak about complete payment of the debt,” he was quoted by Russia’s state-backed news agency RIA Novosti as saying Tuesday. A debt row in 2009 prompted Russia to cut gas supplies to Ukraine. That decision left downstream European consumers in the cold for weeks because most of their Russian gas supplies run through Soviet-era pipelines in Ukraine. The Ukrainian government […]

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EU optimistic over latest Russian, Ukrainian gas spat

KIEV, Ukraine, Nov. 5 (UPI) — Neither party to the latest natural gas row between Ukraine and Russia seems interested in revisiting past conflicts, a European commissioner said. Gazprom Chief Executive Alexei Miller said last week Ukraine has yet to pay its August natural gas bill of $882 million. Gazprom cut natural gas supplies to Ukraine most recently in 2009 because of payment concerns. European Energy Commissioner Gunther Oettinger said he was upbeat about the prospects for a resolution. “I am sure everyone is interested that the year 2009 [is not repeated] again,” he was quoted as saying in a Tuesday report from the National News Agency of Ukraine. He stressed the onus may be on Russia to resolve the issue because of its reliance on natural gas revenue from members of the European Union. European countries get about 20 percent of their natural gas needs met by Russia, […]

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Ukraine minister: Naftogaz debt to Gazprom to be resolved Monday

KIEV, Ukraine, Nov. 4 (UPI) — A dispute over late payment of $882 million owed by Ukraine’s Naftogaz to Russia’s Gazprom will be resolved Monday, a Ukrainian minister said. Minister of Energy and Mines Eduard Stavytskyy told Ukrainian broadcaster Channel 5 Saturday during a soccer game between ministers and members of Parliament the problem of debts for Russian gas will be hammered out Monday. He said the talks between Naftogaz and Gazprom are in the the final stages, but wouldn’t reveal the nature of any of the negotiations, or if the government will step in to provide financial help for the Ukrainian company. “I want to emphasize that the issue is actually solved and on Monday you will learn the details,” Stavytskyy said. He said last week he had given the two energy companies until Thursday to come to an agreement on the debt, but that deadline was pushed […]

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