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| Russia and Ukraine in Talks Over Gas Supplies | Russia and Ukraine in Talks Over Gas Supplies |
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| BERLIN — Representatives from Russia and Ukraine met in Berlin on Friday for a third round of talks with the European Union’s energy commissioner, Günther Oettinger, who is hoping to stave off a threat from the Kremlin to stop supplying Ukraine with gas if Kiev fails to make an advance payment by June 2. | |
| Talks so far have focused on reaching an acceptable price for the gas that Ukraine receives from Russia, and on helping Kiev to establish a system of payment for the gas that it has already consumed. Russia is demanding billions of dollars for unpaid bills since the outbreak of the political crisis in Ukraine late last year. | Talks so far have focused on reaching an acceptable price for the gas that Ukraine receives from Russia, and on helping Kiev to establish a system of payment for the gas that it has already consumed. Russia is demanding billions of dollars for unpaid bills since the outbreak of the political crisis in Ukraine late last year. |
| Mr. Oettinger, a member of Chancellor Angela Merkel’s Christian Democratic Union in Germany, said that he hoped to resolve the dispute to cool tensions between Russia and Ukraine and to prevent any disruption of gas flows to the European Union. | Mr. Oettinger, a member of Chancellor Angela Merkel’s Christian Democratic Union in Germany, said that he hoped to resolve the dispute to cool tensions between Russia and Ukraine and to prevent any disruption of gas flows to the European Union. |
| “Ukraine has to declare today that it will make or has made an initial payment,” Mr. Oettinger said in an interview with the German public radio station Deutschlandfunk ahead of the talks on Friday. He said that Ukraine’s first installment should be a “high, three-digit-million sum in dollars.” | “Ukraine has to declare today that it will make or has made an initial payment,” Mr. Oettinger said in an interview with the German public radio station Deutschlandfunk ahead of the talks on Friday. He said that Ukraine’s first installment should be a “high, three-digit-million sum in dollars.” |
| Mr. Oettinger also made clear his opinion that Russia had to bring its price down from the $485 for 1,000 cubic meters that he said it is currently asking from Ukraine. He said that price did not reflect current market prices paid by other European countries, and “is clearly influenced by politics.” | Mr. Oettinger also made clear his opinion that Russia had to bring its price down from the $485 for 1,000 cubic meters that he said it is currently asking from Ukraine. He said that price did not reflect current market prices paid by other European countries, and “is clearly influenced by politics.” |
| Following a meeting on Monday, Mr. Oettinger proposed that the Ukrainian national energy company Naftogaz commit to pay $2 billion by Friday, followed by another $500 million by June 7 as down payments for outstanding bills from November 2013 to March 2014. In return, Gazprom, the Russian gas company, would agree to continue the flow of gas for June, dropping its previous insistence on prepayments. | Following a meeting on Monday, Mr. Oettinger proposed that the Ukrainian national energy company Naftogaz commit to pay $2 billion by Friday, followed by another $500 million by June 7 as down payments for outstanding bills from November 2013 to March 2014. In return, Gazprom, the Russian gas company, would agree to continue the flow of gas for June, dropping its previous insistence on prepayments. |
| Continuing violence in eastern Ukraine threatened to overshadow the attempts to reach an agreement in Berlin. On Thursday, Pro-Russian rebels shot down a Ukrainian military helicopter near the separatist stronghold of Slovyansk, killing 12 people aboard, including a general. | Continuing violence in eastern Ukraine threatened to overshadow the attempts to reach an agreement in Berlin. On Thursday, Pro-Russian rebels shot down a Ukrainian military helicopter near the separatist stronghold of Slovyansk, killing 12 people aboard, including a general. |
| While Ukraine depends on Russia for its energy needs, Russia also supplies about 30 percent of the gas consumed in Europe. Around half of those gas supplies are delivered through Ukraine. | While Ukraine depends on Russia for its energy needs, Russia also supplies about 30 percent of the gas consumed in Europe. Around half of those gas supplies are delivered through Ukraine. |
| European leaders have said that they have built up their gas reserves and have sought alternative sources of gas to ease their dependence on Russia, as well as expanding the network of pipelines that circumvent Ukraine. | European leaders have said that they have built up their gas reserves and have sought alternative sources of gas to ease their dependence on Russia, as well as expanding the network of pipelines that circumvent Ukraine. |
| A recent study by the Oxford Institute for Energy Studies, a research organization, suggested that, because of a more extensive network of pipelines, Europe could now weather a cutoff of gas through Ukraine better than during disruptions in 2006 and 2009. Since the opening in 2012 of the Nord Stream pipeline, which runs beneath the Baltic Sea to deliver gas directly to Germany from Russia, only 50 percent of the gas destined for Europe crosses Ukraine, compared with 80 percent previously. | A recent study by the Oxford Institute for Energy Studies, a research organization, suggested that, because of a more extensive network of pipelines, Europe could now weather a cutoff of gas through Ukraine better than during disruptions in 2006 and 2009. Since the opening in 2012 of the Nord Stream pipeline, which runs beneath the Baltic Sea to deliver gas directly to Germany from Russia, only 50 percent of the gas destined for Europe crosses Ukraine, compared with 80 percent previously. |
| “Europe is in a better position to handle a potential disruption than on previous occasions,” the report by the Oxford Institute for Energy Studies said. | “Europe is in a better position to handle a potential disruption than on previous occasions,” the report by the Oxford Institute for Energy Studies said. |
| The standoff between Moscow and Ukraine also comes at a time when demand for gas in Europe is at a seasonal low because there is little need for fuel for either heating or cooling. The recent mild winter in Europe has also given the continent an opportunity to build up plenty of storage. | The standoff between Moscow and Ukraine also comes at a time when demand for gas in Europe is at a seasonal low because there is little need for fuel for either heating or cooling. The recent mild winter in Europe has also given the continent an opportunity to build up plenty of storage. |
| Prices in Britain, the most actively traded European gas market, have fallen below $7 per million British Thermal Units, about a third less than they were last fall. “The market is very relaxed about a short term disruption of flows,” said Trevor Sikorski, an analyst at Energy Aspects, a London-based research firm. | Prices in Britain, the most actively traded European gas market, have fallen below $7 per million British Thermal Units, about a third less than they were last fall. “The market is very relaxed about a short term disruption of flows,” said Trevor Sikorski, an analyst at Energy Aspects, a London-based research firm. |