Gazprom to discontinue natural gas price discount for Ukraine

OAO Gazprom plans to discontinue its natural gas price discount for Ukraine in April.

Dmitry Medvedev, Russia’s prime minister, discussed gas pricing with Alexey Miller, chairman of Gazprom’s management committee, in a Mar. 4 meeting.

According to a transcript of the meeting posted on Gazprom’s web site, Miller said Ukraine has total gas indebtedness of $1.529 billion.

Miller said the discount price had been agreed upon late in 2013, “provided that Ukraine would ultimately clear the debts accumulated over the last year and would pay in full for current supplies.”

Gazprom hasn’t received any payments for gas supplied Ukraine in January “and our Ukrainian partners informed us yesterday that they would not be able to pay in full for the gas supplied in February,” Miller said.

“Given that Ukraine is not fulfilling its obligations or complying with the agreements reached when signing the contractural addendum providing a gas discount, Gazprom resolved to remove the discount starting from this April,” Miller said.

Miller said Ukraine has repaid $1.3 billion of 2013 debt. Medvedev said, “It’s no secret that those 50% they paid came from the sovereign loan we had given them.”

Miller said the “easiest” way to settle indebtedness and payments for current gas supplies would be for Gazprom to provide Ukraine with a loan of $2 billion or $3 billion.

Medvedev told Miller that “your decision to terminate the beneficial terms of supplies looks completely justified.”  He said he will entrust the Ministry of Finance to consider all “possibilities and obstacles.”

Related Articles

Uganda names 16 firms eligible for first licensing round


Uganda’s government has granted approval to 16 companies to bid on exploration rights for six blocks in the nation’s Albertine Graben region.

MARKET WATCH: NYMEX crude oil prices rose to nearly $45/bbl

08/11/2015 Both light, sweet crude oil and Brent crude oil prices rose more than $1/bbl on the New York and London markets Aug. 10, but prices appeared to be ...

Eventful first half for Petrobras ends with income down 43%

08/10/2015 During a first half in which it endured a massive anticorruption probe and tax dispute with Brazilian authorities, Petroleo Brasileiro SA (Petrobra...

California pipeline leak to cost at least $257 million, PAA estimates

08/10/2015 A crude oil pipeline leak north of Santa Barbara, Calif., will cost Plains All American Pipeline LP at least $257 million, the Houston midstream tr...

Keyera takes 50% stake in portion of Grand Rapids pipeline

08/10/2015 Keyera Corp. has agreed to acquire 50% interest in the southernmost section of the 20-in. diluent Grand Rapids pipeline, entering into a 50-50 join...

Clinton's energy goals point toward economic hazard


If Hillary Clinton becomes president of the United States and implements the energy policy she's now describing, she won't win a second term.

API: Oil, gas boost 2015 US trade balance

08/10/2015 The oil and gas industry continues to drive US economic gains in 2015, a trend that could accelerate under free trade policies, noted American Petr...

Momentum to repeal crude export ban continues to build, Gerard says

08/10/2015 The drive to remove the 40-year-old ban on exporting US-produced crude oil is gaining momentum as more members of Congress recognize the action's o...

Nelson vows to block Murkowski's stand-alone crude oil bill

08/10/2015 The US Senate Energy and Natural Resources Committee approved Chair Lisa Murkowski's (R-Alas.) bill to end the ban on exporting US-produced oil. Bu...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected