#AceFinanceNews – KIEV – May 08 – Ukraine is continuing to import gas from Poland and Hungary using a reverse-flow supply scheme, the press service of the Ministry of Energy and Coal Industry said on Thursday, May 8.
“Starting from May, Ukraine has been receiving up to 14 million cubic metres of natural gas from Hungary daily in reverse-flow mode,” the ministry said.
“Technically, the maximum amount of 4 million cubic metres of gas can be supplied through Poland daily for the time being, or about 1.5 billion cubic meters a year,” it said.
According to Ukrainian Energy and Coal Industry Minister Yuri Prodan, reverse-flow supplies can reach 8 billion cubic metres by September 1, 2014, not by 2015. Gas will be supplied by the Vojany-Uzhgorod pipeline, not the transit pipeline.
EU Energy Commissioner Guenther Oettinger said such supplies would not require the Russian company’s agreement and would give Ukraine up to 10 billion cubic metres of a gas a year but stressed that reverse-flow gas supplies from Slovakia to Ukraine by the trunk pipeline would be impossible without Gazprom’s consent as it would run counter to the Slovak company Eustream’s contractual obligations.
Oettinger believes that diversification of supplies will help to solve Ukraine’s gas problem in part. However reverse-flow supplies from Poland and Hungary by the Vojany-Uzhgorod pipeline will not be enough for Ukraine get through the coming winter comfortably.
Kiev is planning to buy about 290 million cubic metres of gas in Europe in reverse mode (about 140 million cubic metres will be delivered through Poland and the rest through Hungary).
Russian News – Press – Itar-Tass
#AceFinanceNews – MOSCOW – May 08 – Russia will supply natural gas to Ukraine on a prepaid basis from June 1, Energy Minister Alexander Novak said on Thursday, May 8.
“May 7 was the last day when Ukraine had to pay for the gas supplied. We have not received any payment from Naftogaz Ukrainy since March of this year. Ukraine’s overall debt for gas has reached 3,508 billion U.S. dollars up to date,” he said.
In accordance with Clauses 5.1.5 and 5.8 of the contract for the supply of gas made by and between Gazprom and Naftogaz of Ukraine in 2009, failure to perform the obligations entails an automatic transition to gas supplies on a prepaid basis from June 1, 2014, Novak said.
On May 16, Gazprom will issue a preliminary bill for the supply of gas in June. Ukraine will have an opportunity to pay this bill by May 31, in which case the amount of gas to be supplied in June under the advance payment will not exceed the volume paid for until May 31.
Russian News and Oil Media Sources
#AceFinanceNews – MOSCOW – May 08 – INTERFAX.RU – Ruble against the dollar and the euro on the Moscow Stock Exchange on Wednesday rose amid allegations of the situation in Ukraine, made by Russian President Vladimir Putin after talks with his Swiss counterpart Didier Burkhalter, now presiding in the OSCE.
The euro exchange rate during Putin’s speech fell 39 cents to $ 48.96 rubles. Simultaneously, the dollar fell to 35.135 rubles, losing 27.5 kopecks to the previous close. Currency basket ($ 0.55 and € 0,45) decreased by 33 cent, amounting to 41.36 rubles.
Subsequently developed ruble success, pushing the dollar to 34.99 rubles. Thus, the first dollar for the first time in April fell below 35 rubles. Euro to 17:53 Moscow time dropped to 48.77 rubles and currency basket fell to 41.19 rubles.
At the same time the dollar and the currency basket updated lows in nearly a month. In addition, for the first time since early April cart was at the levels at which the central bank can not intervene to support the ruble.
The Russian stock market after Putin’s announcement also accelerated the rise. By 17:48 Moscow time the MICEX index rose to 1365.84 points (+3.6%), RTS – to 1226.88 points (+4.6%), while the ruble prices of most “chips” on the Moscow Stock Exchange rose within 10%.
Experts attribute the ruble and stock market growth to the fact that Putin’s statement after his meeting with Burkhalter gave hope for a speedy resolution of the conflict between Kiev and supporters of the federalization of Ukraine, whose performances will continue in the south-east of the country.
Ace Related News:
1. May 07 – Interfax – http://tinyurl.com/pspcxjl