Ukraine’s Naftogaz prepaid Russia’s Gazprom $378 million over the weekend for December supplies of Russian gas.
Alexey Miller, Gazprom CEO was reported by Bloomberg stating on October 31 that gas shipments to Ukraine would resume within 48 hours upon receipt of payment. Sergey Kupriyanov, Gazprom’s spokesman, has been reported by TASS saying, “The money (for the gas supply) has been received; we are expecting a request from Ukraine’s Naftogaz regarding the supply volumes.”
On December 7, Ukrainian Energy and Coal Industry Minister Volodymyr Demchishin said, “On Friday, we paid Gazprom for one billion cubic meters of gas and will start to withdraw gas from Monday.” Under the reached agreements between Russia and Ukraine, the natural gas price for Ukraine in the Q4 of 2014 is $378 for 1,000 cubic meters.
On June 16, Gazprom stopped the gas delivery to the Ukrainian side as it had not received prepayment for the June supplies. The EU, which relies on Russian gas transit through Ukraine for about 15% of its total needs, arranged a short-term agreement between the two back in October to resume the supplies and avoid the gas shortages experienced in 2006 and 2009.
Ukraine may need 3 to 4 billion cubic meters of the Russian gas to last through this winter, which could cost as much as $1.5 billion starting in January. The gas agreement reached in October 2014 has a fixed discount and debt-restructuring conditions and covers Gazprom deliveries only through to March. Ukraine also agreed to pay off $3.1 billion of its gas debt by the end of the year, transferring a first installment of $1.45 billion last month.
Alexander Novak, Russian Energy Minister said in October that gas supplies could be cut again in January 2015 if Ukraine doesn’t pay off the debt agreed.
GAZPROM’s shares have shown volatility since the beginning of June trading as low as 105.57 and as high as 157.6. Today, GAZPROM fell to 133.96 from 143.69 on Friday.
MT4 CHART: GAZPROM
Moscow50 falling as well. Trading at 158787 on Friday, the index is now down to 148125 from 155408 this morning.
MT4 CHART: Moscow50
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