Trilateral gas talks in Vienna fail, EU to look for solutions

Ukraine and Russia failed to agree on gas issues during the trilateral gas talks in Vienna on Tuesday, and the European Commission (EC) will continue looking for solutions to ensure further gas negotiations.

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"Today’s trilateral consultation has again shown that all parties agree on the principles needed to ensure stable and smooth gas deliveries to Ukraine and transit to the EU. The translation of these principles into a jointly agreed final framework require further work. As the meeting has shown today, the parties are still far apart. We have agreed that the Commission will put forward ideas to prepare next steps so that the next consultation could take place. We will use the summer to start preparing the next winter season," EC Vice-President Šefčovič said in a statement on the outcome of the EU-Russia-Ukraine trilateral gas talks in Vienna.

Participating in the talks were also Ukrainian Energy Minister Volodymyr Demchyshyn, Naftogaz of Ukraine CEO Andriy Kobolev, and Russian Energy Minister Alexander Novak.

Speaking prior to the talks, Novak said that Russia would not discuss with Ukraine the amount of discount it was going to provide for gas supplies in the third quarter.

"The decision is to be taken by the government of the Russian Federation and not by Ukraine. Therefore, there is no need for any approval," Novak said.

The minister also pointed out that calculation of pre-payment for deliveries of Russian gas under the contract between Naftogaz and Gazprom in the third quarter would be made based on the price of $247.18 per 1,000 cubic meters.

The day before, on June 29, Russian Prime Minister Dmitry Medvedev met with Novak and Gazprom CEO Alexei Miller to discuss gas relations with Ukraine. Medvedev said that the Russian government had decided to grant Ukraine a $40 discount for gas supplies in the third quarter, which made the price for Russian gas at $247.18 per 1,000 – the same as in the second quarter.

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