The gas dispute between Russia and Ukraine has been resolved. The agreement now concluded in Brussels will guarantee gas supplies to Ukraine until March 2015. The German government has repeatedly stressed the need for a mutually acceptable solution.
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After agreement was reached on Russian gas supplies for Ukraine, Chancellor Angela Merkel spoke by telephone with Russian President Vladimir Putin, French President François Hollande and Ukrainian President Petro Poroshenko. They all welcomed this step and praised the mediation efforts of the EU’s Energy Commissioner Günther Oettinger.
In June, Russia suspended gas supplies to Ukraine following Ukraine’s refusal to accept higher prices.
The end to the gas dispute is important to ensure that the people of Ukraine can be supplied with power. But over and above this it is a positive signal that goes beyond the agreement per se.
The agreement between Russia and Ukraine is also an important step towards ensuring secure energy supplies in the EU. A large percentage of the gas supplied by Russia to Europe uses Ukraine’s pipelines.
Up to March 2015, Ukraine will pay about 385 US dollars (about 305 euros) per 1000 cubic metres for Russian gas. This "winter package" is in line with a proposal made to both sides by EU Energy Commissioner Günther Oettinger.
By the end of the year, Ukraine is to pay the Russian gas company Gazprom 3.1 billion US dollars (about 2.5 billion euros) to settle outstanding gas bills. The payment is to be made in two instalments: 1.45 billion dollars immediately and 1.65 billion dollars by the end of the year. Günther Oettinger explained that Ukraine has put aside budget funds for this purpose. He also pointed to aid programmes already adopted by the EU and the International Monetary Fund (IMF).