Arseniy Yatsenyuk: Russia rejected negotiations on gas ahead of signing economic section of Agreement with EU

“All this mess with gas has been organized ahead of a visit of the President of Ukraine to Brussels, where he should sign the economic section of the Agreement with the European Union,” the Prime Minister of Ukraine Arseniy Yatsenyuk stressed in his statement to the Parliament on Tuesday, June 17.

Arseniy Yatsenyuk reminded there had been several rounds of talks on gas in the tripartite format with participation of European Commissioner for Energy Gunther Oettinger, the Head of Ukraine’s Government, head of Naftogaz Board, Minister of Energy and Coal Industry of Ukraine and head of board of the Russian Gazprom.

The PM emphasized Ukraine and the European Union had elaborated a joint position with regards to signing a gas deal: “We have elaborated a package which is acceptable for Ukraine, adequate for the European Union and absolutely competitive for the Russian Gazprom. A decision taken was that a gas price is to be formed as a package price and made up of two parts: at the so-called low season the gas price should be USD 300 per one thousand cubic meters. At the high, heating season, the price is USD 385. It is a fully market approach”.

The Ukrainian side agreed to prolong payments to the Russian Gazprom: “We were ready, on condition of signing a market package, to carry out the payment worth USD 1 billion, and after that the overall sum we are due to pay to the Russian Gazprom we planned to divide into equal parts by the end of the current year, plus extra charge of 6% annually per each part, as the payment for the actual credit, as was signed in the previous year between Naftogaz and the Russian Gazprom”.

“Knowing that such price is temporary we have agreed it is needed to determine the final price in Stockholm Court and this position found support from the European Commission. We introduce an interim “300 and 385” mechanism, file a claim and the Court of Stockholm will rule. If Gazprom is wrong, they will pay a surcharge, if we are wrong, we will pay a surcharge to Gazprom,” the Head of Government said.  

However, the Head of Government stressed, despite the suggested approaches Russia rejected the negotiations: “It is very regrettable, as was expected, the Russian Federation has rejected any negotiation process”.

Arseniy Yatsenyuk emphasized, the Government of Ukraine considers that the gas deal appears a part of the Russian plan of aggression towards Ukrainian state: “It is the part of a plan that envisages a whole series of measures targeting to destroy Ukrainian independence and statehood. It started from annexation of Crimea, destabilizing the situation in Luhansk and Donetsk, it is financing terrorists in Eastern Ukraine, transportation of terrorists by Russia to the territory of Donbas, transfer of weapon, armament, gas pressure on Ukrainian consumers, economic blockade of Ukraine through blocking bilateral trade and economic relations, through financial pressure. Here is the plan of Russia”.   

“They still cannot understand that Ukraine is an independent state, and it is no matter of Russia to define where we should go. And we are going in the direction of the European Union,” the Head of Government said.

“I will never surrender without resistance. We will endeavor the price which is competitive, just and equitable,” Arseniy Yatsenyuk urged.