Naftogaz asks for China Energy Loan Extension
Ukrainian state energy company Naftogaz has asked a Chinese state bank to extend the deadline by which Naftogaz must submit project proposals to qualify for a loan worth $3.5 billion, the chief executive of a Naftogaz subsidiary said on Monday. It is the latest twist in a long-running saga over a loan agreement that Ukraine, under a previous president, had signed with the China Development Bank (CDB) in 2012. According to previous interviews with officials, squabbles between ministries and Naftogaz have held up the proposals. Ukraine was supposed to submit plans for how it would use the money by June 25 but has asked for an extension until Aug.
Ukraine: Chevron Plans to Pull Out of Shale Gas Deal
U.S. energy major Chevron plans to withdraw from a $10 billion shale gas deal with Kiev, a senior Ukrainian presidential official said on Monday. Ukraine signed a shale gas production-sharing agreement with Chevron amid great fanfare in November 2013, just months before mass protests in Kiev ousted former president Viktor Yanukovich, plunging the country into a major crisis with Russia. "There is information that they (Chevron) are planning this decision," Valeriy Chaliy told journalists, referring to a report by local media that Chevron had told the government it was pulling out of the deal. Chaliy declined to give further details.
How a 29-year-old Ukrainian Made a Killing on Russian Gas
A young businessman accused of being a frontman for former Ukrainian president Viktor Yanukovich made $100 million or more from buying Russian gas at a preferential rate and selling it on at higher prices, according a former senior employee and a Reuters examination of official data. Serhiy Kurchenko, 29 years old and a self-declared billionaire, made the money by selling cheap gas supplied by companies run by Dmitry Firtash, a prominent Ukrainian oligarch. Firtash has long-standing business connections to Russia and his companies were able to buy gas cheaply from Gazprom, the giant gas company run by allies of Russian President Vladimir Putin.
Ukraine, Russia, EU Try to Finalize Gas Deal
Differences over debt, prepayments; Ukraine struggling to secure funds for gas payment. Russia says hopes to finalize a deal. Russia and Ukraine aim to resolve an impasse over natural gas supplies on Tuesday as their energy ministers meet in Brussels for talks brokered by the European Union's energy commissioner. Citing unpaid bills worth more than $5 billion, Russia cut off gas flows to Kiev in mid-June, adding to tensions sparked by Russia's annexation of Ukraine's Crimea region. After months of stalemate, pressure has mounted to reach a deal to allow gas deliveries for heating as winter approaches.
South Stream Project Finance Postponed Until 2015
Fundraising to begin building the subsea stretch of the South Stream gas pipeline from Russia across the Black Sea has been postponed until the first quarter of 2015, Russian news agency Interfax said on Thursday. A source at gas exporter Gazprom, which owns half the project, said the schedule had been pushed back from December, Interfax said. "To raise the project finance by the end of 2014, this is not the case now," the source said. South Stream Transport B.V., operator of the subsea part of the pipeline, and Gazprom both declined comment. The $45 billion pipeline is designed to circumvent Ukraine…
Cutting Off Europe's Gas Would Hit Russia's Gazprom Hard
The unspoken threat to leave Europeans shivering in the cold next winter may be Moscow's trump card in its confrontation with the West over Ukraine. But for both technical and financial reasons, the world's biggest gas exporter would be badly hurt by any decision to cut off its main customers in Europe. Twice in the past decade, Moscow responded to natural gas price disputes with Ukraine by cutting off supplies, affecting its European clients further down its pipelines. As tensions between the West and Russia have escalated in recent weeks, the EU has begun drafting emergency measures to brace itself for another potential energy supply crisis.
Gazprom: Ukraine's Gas Bill Tops $5 billion
Gazprom puts Ukraine's debt for gas supplies at $5.3 bln; Putin, Poroshenko to meet on Aug. 26 in Minsk. Russian natural gas exporter Gazprom said on Thursday that Ukraine's outstanding debt for gas supplies stood at $5.3 billion as of Aug. 1 and called on Kiev to ensure that gas continues to transit without disruption to Europe. "Gazprom counts on Naftogaz of Ukraine to stick to its obligations on redemptions of arrears for the supplied gas and provision of smooth gas transit via Ukraine's territory," Gazprom spokesman Sergei Kupriyanov said. Russia cut off gas supplies to Ukraine on June 16 in a dispute over unpaid bills.
Separatists in Ukraine Agree Ceasefire Until June 27
The separatist leaders of the two main areas of eastern Ukraine in conflict with the Government of Kiev agreed on a cease-fire until June 27, said Monday Boroday Alexander, leader of one of insurgent factions. The truce will run parallel to a ceasefire Ukrainian military said Friday that President Petro Poroshenko, as part of a peace plan to end the separatist insurgency in eastern Ukraine, predominantly Russian-speaking. The announcement of the separatists, after talks that also involved a senior diplomat and a former Russian president came after a day of diplomatic negotiations in which Moscow urged the West to use its influence to defuse the conflict in eastern Ukraine.
Ukraine to Discuss EU/U.S. Pipeline Access
Ukraine's parliament agreed on Thursday to discuss a bill to allow gas transit facilities to be leased on a joint venture basis with participation from firms in the European Union or United States. Ukraine would hold 51 percent and foreign partners would be offered 49 percent in the venture, which would manage both transit pipelines and underground gas storage facilities. Suffering a third cut-off of natural gas supplies from Russia in under nine years, and with bilateral relations in crisis, Ukraine is desperate to become less dependent on Russian gas, but at the same time to provide more reliable transit for the Russian gas that Europe needs.
Ukraine to Split Debt-laden Gas Company
Decree expected later on Wednesday with more details; Naftogaz reform a condition of IMF help (Adds comment from energy minister, confirms proposal accepted. Ukraine will to split its debt-laden state-controlled gas company Naftogaz into three separate businesses to comply with European Union rules regulating competition. Reform of Naftogaz has been on the cards for years and could be one solution to the perpetual wrangling between Kiev and Moscow over Ukraine's gas debts, which have disrupted supply to Europe in the past. Taking steps to make Naftogaz profitable could increase its ability to pay its bills on time.
Russia, Ukraine Hope for Gas Deal this Week
Ukraine has started to pay off gas debts; Gazprom delayed switching Kiev to prepayment. Russia and Ukraine signalled on Tuesday they hope to resolve a dispute by the end of this week over billions of dollars in unpaid gas bills that threatens supplies to Europe and is stoking their political conflict. Russian state-owned exporter Gazprom gave Kiev some respite on Monday by allowing it six more days to pay its debts, averting the risk of an immediate cut in supplies under an advance payment system that had been due to come into force. Although the two sides disagree over the price Ukraine should pay…
Russia Grants Gas Respite, Seeks U.N. Ukraine Vote
Moscow complains situation worse since Ukraine election; demand for U.N. resolution on end to violence. Russia accused Ukrainian authorities on Monday of escalating violence against civilians in the rebel-held east of the country, even as it offered Kiev a brief respite in a dispute over billions of dollars' worth of unpaid gas bills. In the latest fighting, Ukrainian border guards said a pro-Russian militia had attacked one of their posts with automatic weapons and grenade launchers in the early hours, triggering a battle that was still raging many hours later.
Ukraine Says Paid Russia $786m for Gas Debt
Ukraine has paid $786 million to Russia in backpayments for natural gas deliveries, far less than the sum Gazprom demands, Ukrainian Prime Minister Arseny Yatseniuk said on Friday. Yatseniuk said Kiev had paid the debt calculating the sum at a price of $268 per thousand cubic metres - the level Russia had agreed with Ukraine before nearly doubling the price after the ouster of Moscow-backed President Viktor Yanukovich. Gazprom has said Ukraine's debt for gas supplies will have risen to about $5.2 billion by June 7 unless Ukraine begins to pay it off. (Reporting by Pavel Polityuk, Writing by Thomas Grove, Editing by Richard Balmforth)
Further Progress In Ukraine-Russia Gas Row - EU
Europe's Energy Commissioner said on Monday Ukraine and Russia had made further progress in a dispute over gas prices and his proposal that Ukraine to pay $2 billion of back debt by Thursday could pave the way for further talks on Friday. Speaking after three-way talks with Russia's and Ukraine's energy ministers, Guenther Oettinger said the two governments would study his proposal that Ukraine pay Russia $2 billion by Thursday and a further $500 million by June 7. Oettinger, acting as a mediator in the capital of his home country Germany, said if the governments agreed to the deal, further talks about the gas price from April could then be held from Friday.
Progress Made in Russia-Ukraine Gas Dispute
Europe's Energy Commissioner said on Monday progress had been made in the gas price dispute between Russia and Ukraine after talks with Russia's energy minister and Gazprom and said a fresh round of negotiations was scheduled for May 26. Russian President Vladimir Putin has urged EU leaders to do more to help Ukraine through its economic crisis and resolve the standoff over gas. He has threatened to cut exports if Kiev fails to pay in advance for June deliveries. "We have in the last few days made progress on a number of issues but we still have no agreement…
Gazprom Demands $1.66 bln for Ukrain June Gas
Ukraine, Russia disagree over gas price; Gazprom switches Kiev to prepayment from June. Russia's Gazprom demanded a $1.66 billion pre-payment from Ukraine for June gas deliveries on Tuesday, saying the neighbouring country had only half its requirements in storage to ensure a trouble-free winter. Citing a preliminary bill, Moscow pressed ahead with its demand that Ukraine pay for June deliveries early next month, heightening a dispute over price that is pushing the two countries closer to another gas war that could cut supplies. Previous disputes over gas have left Europe…
EU wants Uniform price for Russian gas for all member states
EU's Oettinger calls for uniform pricing. Wants better gas, electricity links with Ukraine, Georgia. European Union member states should reject Moscow's "divide and rule" tactics on pricing its natural gas exports and forge closer gas and power ties with Ukraine and Georgia, EU Energy Commissioner Guenther Oettinger said on Friday. His call for a uniform Russian gas price for EU members reflects tougher talk in Europe on energy following Russia's annexation of Ukraine's Crimea region and its amassing of troops near their shared border. "We want a uniform gas price in the European common market," Oettinger said at the joint news conference with Polish Prime Minister Donald Tusk.
Slovakia Signs Deal to Send Gas to Ukraine
Slovakia and Ukraine signed a deal on Monday that allows the European Union to send a limited amount of gas to Ukraine, but providing Kiev with less than it hoped for to cushion the blow should Russia turn off the taps. Ukraine has been trying to secure alternative supplies to those from Russia's Gazprom since Moscow annexed Crimea last month and Gazprom raised prices for its gas to levels Ukraine is refusing to pay. Russia's seizure of Crimea from Ukraine has set off the most serious East-West rift since the end of the Cold War, resulting in EU and U.S. sanctions and raising the threat of interruption of gas supplies from Russia to Europe.
Slovakia agrees To Ship Limited Gas To Ukraine
Slovakia and Ukraine have reached an agreement on opening up limited capacity for reverse flow of natural gas from central Europe to Ukraine and will sign the deal on Monday, the Slovak Economy Ministry said on Saturday. Ukraine is trying to secure alternative supplies to those from Russia's Gazprom since Russia annexed Crimea last month and Gazprom nearly doubled prices for its gas to levels Ukraine is refusing to pay. Russia's seizure of Crimea from Ukraine has set off the most serious East-West rift since the end of the Cold War, resulting in EU and U.S. sanctions and raising the threat of interruption of gas supplies from Russia to Europe.
Ukraine Haggles with Slovakia for Bigger Gas Shipments
Ukraine could sign a deal on Monday allowing the shipment of up to 10 billion cubic metres (bcm) of gas a year from Slovakia, ministers from the two countries said, although Ukraine says its neighbour could pump three times that much. Russia's seizure of Crimea from Ukraine has set off the most serious East-West rift since the end of the Cold War, resulting in EU and U.S. sanctions, mostly in the form of visa bans and asset freezes for a number of Russian officials. Moscow has nearly doubled the natural gas price it charges Ukraine and threatened to cut gas supplies for non-payment of debt since a new pro-Western government took over in Kiev in February.
