12:01 05.10.2015

Formal signature of 'winter package' gas deal for Ukraine no longer needed, Ukraine only has to pay - Russian minister

The formal signature of a so-called winter package for supplying Ukraine with natural gas is no longer needed, as the necessary agreements have been reached, and the Ukrainian energy company Naftogaz only has to pay for gas for shipments to be started, Russian Energy Minister Alexander Novak told journalists.

"There is no need for any additional decisions, for instance, by the Normandy Quartet, for our agreements on gas. We have reached all the necessary agreements. Moreover, we have signed the report on our consultations. But this is an additional factor of our agreements, which consolidates them. That is, formally speaking, this paper is not needed," he said.

"We lived without any papers before this, in the second quarter. We are simply waiting for the payment. And the government has made a decision on a discount. Gazprom has forwarded technical amendments and additions to the contract for this period, for the winter package, to Naftogaz, as was the case in the previous quarters," he said.

"Gazprom has forwarded a letter to say that 'take or pay' won't work, all steps have been taken, the European Commission has provided financial resources, and Ukraine only has to pay for gas and receive it," Novak said.

The contract gas price for Ukraine for the fourth quarter of 2015 is $248-$252 per 1,000 cubic meters, depending on calorific value of gas, he said.

"The [price] formula provides for dependence on calorific value. But it makes up plus or minus $2-$3 of the price of $230, the discount taken into consideration. The contract price also ranges between $248 and $252 depending on calorific value. Therefore, the discount is about $20 of this price," he said.

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