Ukraine halts Russian gas purchases as talks on deal fail

Ukraine halts Russian gas purchases as talks on deal fail: "Ukraine halted purchases of Russian natural gas after its bigger neighbor took away most of a price discount and declined to sign a three-way accord with the European Union through the winter heating season.

Ukraine’s gas company NAK Naftogaz Ukrainy won’t buy gas from Russia as of Wednesday and will continue purchases from the EU, Energy Minister Volodymyr Demchyshyn said.

Russia’s offer to reduce the discount Ukraine receives to contract prices by 60% in the third quarter wasn’t fair, he said by phone after talks with his Russian counterpart Alexander Novak and the European Commission’s vice president for energy union, Maros Sefcovic.

“Naftogaz halts purchase of Russian gas till supply conditions are agreed on,” the company said in a statement after the trilateral talks ended on Tuesday. “Transportation of gas through Ukraine to Gazprom’s European customers will continue in full, according to the contract terms.”

An agreement between the two former Soviet allies would reduce the risk of supply disruption for the EU, which gets 10% of its gas through pipes crossing Ukraine from Russia. Payment disputes between the two countries disrupted transit flows to Europe in 2006 and 2009 during freezing weather."

'via Blog this'

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