I/III.
http://www.reuters.com/article/2014/10/18/us-ukraine-crisis-gas-idUSKCN0I70Q820141018

Ukraine says it agrees on interim gas price with Russia

KIEV Sat Oct 18, 2014 5:17pm EDT


1 of 2. Russia's President Vladimir Putin (L) shakes hands with
Ukraine's President Petro Poroshenko as he arrives for a meeting on
the sidelines of a Europe-Asia summit (ASEM) in Milan October 17,
2014.

Credit: Reuters/Daniel Dal Zennaro/Pool

(Reuters) - ***Ukraine's and Russia's leaders have reached a
preliminary agreement on a price for gas supplies this winter but Kiev
may need international help to pay, Ukrainian President Petro
Poroshenko said on Saturday*** [emphasis added].

Poroshenko met Russian President Vladimir Putin in Milan on Friday to
discuss the conflict in Ukraine's eastern regions, where pro-Russian
separatists are fighting Kiev government forces.

Russia cut off gas supply to Ukraine in mid-June following more than
two years of dispute on the price. Russia said Ukraine had to pay off
large debts for previously-supplied gas before it would resume supply.

"(We) reached an agreement," Poroshenko said in an interview with
Ukrainian TV channels. "Until March 31 we will fix the price at $385."

An agreement signed in 2009 by former Prime Minister Yulia Tymoshenko
called on Ukraine to pay $485 per 1,000 cubic meters for Russian gas.
Kiev is contesting the contract in a Stockholm arbitration court.

Poroshenko said that state-run energy company Naftogaz was short of
funds to pay for Russian gas partly because of debts created by
consumers in eastern Donetsk and Luhansk regions, controlled by
pro-Russian separatists.

"We must solve the question of how we cover the deficit of funds for
Naftogaz for gas purchases," Poroshenko said.

"We have several different options (including) the International Monetary Fund."

He said a mission of the IMF is due to arrive in Kiev in mid-November
to discuss amendments to the current loan program for Ukraine.
Poroshenko said the next round of gas talks was likely to take place
on Oct. 21 in Brussels.

(Writing by Pavel Polityuk; editing by Andrew Roche)

II/III.
http://rt.com/business/196856-russia-ukraine-gas-crisis/

Putin says gas deal with Ukraine for winter months only, Poroshenko
says no deal at all
Published time: October 17, 2014 13:19
Edited time: October 17, 2014 17:04

Russia's President Vladimir Putin (L) stands with German Chancellor
Angela Merkel (C) and Ukraine's President Petro Poroshenko (R) as
Italy's Prime Minister Matteo Renzi stands on the back during a
meeting on the sidelines of a Europe-Asia summit (ASEM) in Milan
October 17, 2014 (Reuters / Daniel Dal Zennaro)

***Kiev and Moscow have failed to resolve their gas supplies dispute,
Ukrainian President Petro Poroshenko said after meeting Russia's
leader. According to Putin, only an agreement for winter supplies has
been reached, but details are still to be worked out.*** [Emphasis
added.]

"We agreed on the basic parameters of the gas contract," Poroshenko
told reporters in Milan where leaders from Europe and Asia gathered
for the ASEM Summit. According to the Ukrainian president, the
Ukrainian side is looking for sources of funding to pay off the
arrears.

The optimistic statement came after Poroshenko met with Russian Energy
Minister Aleksandr Novak and the head of Gazprom Aleksey Miller.

But emerging from a meeting Russia's President Vladimir Putin later in
the day, the Ukrainian leader said that no agreement had been reached.
New talks have been scheduled for October 21; the EU is once again set
to mediate the process.

"We have failed to reach any practical results," Poroshenko told
reporters after a 45-minute meeting with Putin. He noted that "some
progress" in the dispute but said that details are yet to be worked
out.
No more credit-based gas to Ukraine - Russia

Vladimir Putin, on his behalf, stated the two countries agreed on
terms of gas supplies "at least for the winter period".

"The current issue is cash deficit in Ukraine," Putin said, calling on
Western partners to help Kiev overcome the crisis.

Russia is not ready to supply gas to its eastern neighbor without
pre-payment. He said that Kiev still owes Moscow some $5.5 billion,
but is ready to reconsider this sum and a provide a discount of $100
per one thousand cubic meters. This will reduce the debt to $4.5
billion.

At the last round of gas talks held in Berlin along with EU energy
commissioner Gunther Oettinger, it was agreed that Ukraine would start
paying back Gazprom $2billion of its $5.3 million debt, and Russia
would turn back on supplies.

So far no further detail has been provided, but trilateral talks
between Russia, the EU, and Ukraine will again be held on October 21
in Brussels.

The gas price and payment schedule have been key stumbling blocks in
the dispute.

Russia offered $385 per 1,000 cubic meters of gas, less than the $400
average for European clients, but Kiev argues the price is too high,
and wants to set it at $285 per 1,000 cubic meters.

READ MORE: Putin: If Ukraine siphons gas from pipeline, Russia will
reduce Europe supplies

Europe counts on Russian natural gas to meet about one third of its
energy needs, and 50 percent of the gas travels through Ukraine. If
Moscow cuts off deliveries via Ukraine, 15 percent of Europe's gas
will be at risk.

Moscow will supply enough gas to Europe this winter, but says Ukraine
remains a wildcard. If Kiev siphons off gas intended for European
customers, Moscow will be forced to reduce gas supplies.

Winter warning

Russia turned off the gas to Europe via Ukraine in 2006 and in 2009,
over similar pricing disputes with Kiev. A prolonged supply disruption
would have a substantial impact on the EU, the European Commission
warned on Thursday.

Latvia, Lithuania, Estonia, Finland, Bulgaria and the Czech Republic
import 100 percent of their natural gas from Russia and would be
affected most by a cut in supply, as they would be without at least 60
percent of the gas they need keep the heat on.

"This means that even private households could be left out in the
cold. If countries work together, instead of adopting purely national
measures, then fewer consumers will be cut off from the gas," the EU
statement said.

Ukraine has already been preparing for shortages in central heating,
with some stocking up on dirtier energy sources like wood and coal,
just in case they have to survive the winter without gas.

III.
http://rt.com/news/196920-putin-ukraine-crisis-milan/

Putin: Ukraine's new Donbass law 'not perfect, but a step in right direction'
Published time: October 17, 2014 17:51

Russia's President Vladimir Putin attends the closing ceremony of the
Europe-Asia summit (ASEM) in Milan October 17, 2014.
(Reuters/Alessandro Garofalo)

The new law giving special status to troubled regions in eastern
Ukraine is 'not perfect,' but might be used to finally stabilize the
situation in the area, Russian President Vladimir Putin said after a
meeting with his Ukrainian counterpart in Milan.

"Perhaps it's not a perfect document, but it's a step in the right
direction, and we hope it will be used in complete resolution of
security problems," Putin said after closed-door talks with Ukrainian
President Petro Poroshenko on Friday.

The two presidents met in Milan privately on the sidelines of the
Asia-Europe Meeting (ASEM), a summit of Asian and European leaders.

The document on special status for the Donetsk and Lugansk regions was
signed by Poroshenko on Thursday.

The legislation "defines temporary order of local government in
certain districts," according to the Ukrainian president's official
website.

The special order enacts governance "in the cities, towns and
villages" to be "carried out by territorial communities through local
government bodies under the Constitution and the Laws of Ukraine,"
with local elections scheduled in the districts for December 7.

It also aims to restore the regions' infrastructure and "create
conditions" to stabilize the situation in the area.

The new law, which will be valid for three years from the date of its
publication, is part of the agreement reached between Kiev authorities
and eastern Ukrainian militias in Minsk on September 5.

The Minsk protocol, which also includes decisions on a ceasefire and
the exchange of war prisoners, should be the guideline in Ukraine's
conflict management, Putin said.

"I'd like to point out that these agreements, unfortunately, are not
fully implemented by either side," added the Russian leader, speaking
to journalists after the Milan talks.

Italy, France, Germany, and Russia have expressed willingness to use
drones to monitor the situation in the region, Putin said. He added
that the technical side of the plan will be discussed in the near
future, when specialists gather at the OSCE (Organization for Security
and Co-Operation in Europe) headquarters in Vienna.





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