#AceFinanceNews – MOSCOW – May 13 – Russia’s Gazprom demanded a $1.66 billion pre-payment from Ukraine for June gas deliveries on Tuesday, saying the neighbouring country had only half its requirements in storage to ensure a trouble-free winter.
Citing a preliminary bill, Moscow pressed ahead with its demand that Ukraine pay for June deliveries early next month, heightening a dispute over price that is pushing the two countries closer to another gas war that could cut supplies.
Previous disputes over gas have left Europe, which gets around a third of its gas needs from Russia, with limited supplies at the height of winter, spurring it to look for alternative producers. But so far it has been unable to break its dependence on Moscow.
State-controlled Gazprom said the bill was based on Ukraine taking up a contractual amount of 114 million cubic metres per day, or 3.4 billion cubic metres for the month in total.
“Taking into account non-working days, Naftogaz should pay this bill by June 2 and, starting from June 3, the company will be getting gas… only at the volumes paid for,” spokesman Sergei Kupriyanov said in a statement.
This means that Ukraine needs to pay $1.658 billion for June’s gas deliveries based on a price of $485 per 1,000 cubic meters, he added.
Naftogaz confirmed it had received the bill but declined to comment further.
#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 – UKRAINE – May 01 – The Executive Board of the International Monetary Fund (IMF) has approved a two-year Stand-By Arrangement (SBA) worth $17.01 billion for Ukraine, the IMF’s press service said on May 1.
As was earlier reported, Kyiv hopes to get the first $3 billion tranche of the new SBA between May 5 and May 8, 2014, Ukrainian Finance Minister Oleksandr Shlapak said on April 30. (Interfax-Ukraine)
“We’re waiting about $3 billion [in the first tranche]: $1 billion will go to the National Bank of Ukraine, $2 billion will cover the budget deficit.
We expect this from May 5 to May 8,” he said.
IMF PRESS RELEASE
#AceFinanceNews- VIENNA – April 30 – Decision to extradite businessman Dmitry Firtash from Austria to the United States is expected in May, according to Deutsche Welle , with reference to the District Court of Vienna.
Firtash is the head of the board of Group DF group of companies and of the Federation of Employers of Ukraine. Lawyer businessman in court will act former Minister of Justice of Austria Dieter Bemdorfer.
As the U.S. Department of Justice, Firtash threatens conclusion for several decades for the creation of a criminal group and money laundering, the maximum combined sentence for the crimes he is charged with is 50 years.
Firtash suspected of forming a criminal group and bribing local officials in one of the states of India, as well as representatives of the central authorities.
DEUTSCHE WELLE – GAZETA – BBC
#AceFinanceNews – STOCKHOLM – April 28 – Following the crisis in Ukraine, Sweden’s government has proposed increasing the Nordic country’s military spending by 5.5 billion Swedish kronor ($830 million) a year.
The four-party centre-right coalition said Tuesday it is deeply concerned by the recent events in Ukraine and wants to raise the military outlays gradually in coming years to reach the proposed figure by 2024.
Among other things, it wants to buy 10 more fighter jets and two more submarines to improve the defence of the Baltic Sea and the island Gotland.
After the Soviet Union collapsed in 1991, Sweden’s defence budget was slashed and its military emphasis shifted toward international peacekeeping operations. Now, however, both the left-leaning opposition and the government agree that the country’s military readiness is inadequate.
#AceFinanceNews- KIEV – April 28 – Ukraine is ready to pay the price of 268 US dollars per 1,000 cubic metres of Russian gas, parliament-appointed Prime Minister Arseniy Yatsenyuk said on Monday, April 28.
This is 45% below the established price of gas.
If Moscow disagrees, Kiev will be prepared to contest its debt in court, he said.
Yatsenyuk told reporters that a “note” had been sent to Russia’s Gazprom, which “states the price”.
If Gazprom accepts the proposed terms, Ukraine will pay the gas debt of 2.2 billion US dollars immediately.
If no solution is found within 30 days, the dispute will be taken to court.
#AceFinanceNews – LONDON – April 25 – International rating agency S&P has downgraded Russia’s sovereign rating from BBB to BBB- with ‘negative’ outlook.
S&P has explained downgrading of Russia’s sovereign credit rating from BBB to BBB – with capital flight from the country in the first quarter of 2014 and reduced capabilities to attract funding on foreign financial markets due to current Ukrainian political crisis, the agency stated.
“We believe that the complex geopolitical situation between Russia and Ukraine may lead to additional substantial outflow of both foreign and local capital of the Russian economy, undermining the already weak growth prospects,” S&P said.
#AceFinanceNews – UKRAINE – The German government has frozen military exports to Russia in connection with the situation in Ukraine, Germany’s Economy Ministry reportedly said in response to a request of the opposition Greens party.
According to German media, 69 export requests worth 5.18 million euro ($7.16 million) have been blocked.
“Because of the current political circumstances, no export licenses for defence goods for Russia are being granted.
Furthermore, Germany has launched a study into what can be done about export licenses previously granted,” the ministry replied to the Greens’ request, Reuters reported.
Die Spiegel – Reuters – RT News