© AFP 2015/ SERGEY BOBOK
"Naftogaz suspends purchases of gas from the Russian company as the previous additional agreement to contract between Naftogaz and Gazprom expires on June 30 while the sides failed to agree new conditions for gas deliveries during today's trilateral talks in Vienna," the Ukrainian company said in a statement.
"The transit of gas through the Ukrainian territory to Gazprom customers in Europe under the existing contracts will continue in full," Naftogaz stressed.
Energy Minister Volodymyr Demchyshyn said Tuesday that Ukraine was not satisfied with Russia's recent gas price offer of $247 per 1,000 cubic meters and would insist on a 30-percent of discount to the contractual price.
"We believe that the discount must be calculated in the format of the 'winter package' of the last year, which, as you remember, was $100 or 30 percent of the contractual price," Demchyshyn said after a fresh round of trilateral gas talks in Vienna.
"The Russian side believes that this amount is fair, but we disagree," Demchyshyn stressed.
"Russia insists that the gas price be determined for each new quarter and the next talks in September must determine the base price for the fourth quarter...but we believe that such an approach does not allow us to reach an optimal purchases volume to fill underground storage facilities," the minister said, adding that Kiev insists on signing a trilateral agreement on supplies for the whole heating season.
Russian Energy Minister Alexander Novak later expressed surprise at Kiev's dissatisfaction with Moscow's offer, saying that the new $247 price is lower than current global gas prices.
The current Ukrainian gov't allowed the US and the EU to make their bed and now they must sleep in it. One of the many lessons they should have known is that it is not wise to antagonize someone from whom you are seeking favors.
Don't like the terms that are being offered now??? Fine, don't buy any.
Just wait. Winter is coming.