Russia-Ukraine gas deal re-negotiated

Berlin has housed representatives from both Ukraine and Russia which came together to discuss the gas problem and try to come up with a solution.

It seems that some progress has been made after Russia agreed to continue negotiations regarding gas supply price for Ukraine if the latter pays $2 billion of its accumulated debt by Thursday and another $500 million in June of this year.

However, the matter is more complicated as Ukraine seeks to modify clauses of a contract it signed back in 2009 which states that Kiev will buy a pre-determined amount of gas supply, whether it needs it or not, at the settled price of $485 per 1,000 cubic meters. The price Ukraine agreed to is the biggest one paid by any country in Europe.

Now, the Ukrainian Energy Minister, Yuri Prodan, says that price is not an issue but agreeing on a fair price is: 'I only want to reiterate it’s not a question of payment but it’s about a fair market price. The payment is not an issue and if a fair price is fixed Ukraine will pay its debts.'

Alexander Novak, the Russian Energy Minister, has agreed to continue further negotiations only after Ukraine will pay part of its debt: 'Our side is prepared, when we receive the payments, to continue negotiations until Friday about prices for future supplies to the Ukrainian site.'