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| Russia's gas fight with Ukraine | Russia's gas fight with Ukraine |
| (about 14 hours later) | |
| As the days become colder and the nights shorter, the search for a deal to keep the heating on in Ukraine and safeguard the supplies of many of its neighbours is reaching a critical point. | As the days become colder and the nights shorter, the search for a deal to keep the heating on in Ukraine and safeguard the supplies of many of its neighbours is reaching a critical point. |
| Russia cut off Ukraine's gas supplies in June as the conflict between the government in Kiev and pro-Russian rebels in the east escalated. Now there are hopes that both sides can find a compromise. | Russia cut off Ukraine's gas supplies in June as the conflict between the government in Kiev and pro-Russian rebels in the east escalated. Now there are hopes that both sides can find a compromise. |
| Why did Russia cut off Ukraine's gas? | Why did Russia cut off Ukraine's gas? |
| Russia moved on 16 June to turn off the taps, after complaining that Ukraine had failed to pay off its debts, estimated at $5.3bn (£3.3bn; 4.2bn euros) by Russian state-run giant Gazprom. Gazprom had sought a repayment of $1.95bn. | Russia moved on 16 June to turn off the taps, after complaining that Ukraine had failed to pay off its debts, estimated at $5.3bn (£3.3bn; 4.2bn euros) by Russian state-run giant Gazprom. Gazprom had sought a repayment of $1.95bn. |
| It was not the first time: it cut supplies because of price disputes in 2006 and in the winter of 2008-09. But in the tug-of-war between Russia and the EU over the future direction of Ukraine, this row has been harder to resolve. | It was not the first time: it cut supplies because of price disputes in 2006 and in the winter of 2008-09. But in the tug-of-war between Russia and the EU over the future direction of Ukraine, this row has been harder to resolve. |
| Why is gas so important? | Why is gas so important? |
| Ukraine, until the current crisis, relied on Russia for half its gas supplies. Some EU member states such as Slovakia take all their gas from Russia. In total, Russia supplies 23% of the EU's gas. | Ukraine, until the current crisis, relied on Russia for half its gas supplies. Some EU member states such as Slovakia take all their gas from Russia. In total, Russia supplies 23% of the EU's gas. |
| Russia's supply lines run through Ukraine to several EU countries, and as much as 70% of its gas to the EU is carried through those pipes. So while Russia has in recent years tried to bypass Ukraine, in particular with the Nord Stream and South Stream projects, the two countries are, for now, inextricably linked. | Russia's supply lines run through Ukraine to several EU countries, and as much as 70% of its gas to the EU is carried through those pipes. So while Russia has in recent years tried to bypass Ukraine, in particular with the Nord Stream and South Stream projects, the two countries are, for now, inextricably linked. |
| Has Moscow tied its gas supply to the crisis in Ukraine? | Has Moscow tied its gas supply to the crisis in Ukraine? |
| The supply and price of Russian gas has been part of this crisis from the start. | The supply and price of Russian gas has been part of this crisis from the start. |
| In December 2013, Ukraine's then-President Viktor Yanukovych enraged protesters by signing a deal for cut-price gas in Moscow weeks after he ditched an agreement for closer ties to the EU at the last minute. | In December 2013, Ukraine's then-President Viktor Yanukovych enraged protesters by signing a deal for cut-price gas in Moscow weeks after he ditched an agreement for closer ties to the EU at the last minute. |
| In April, the government in Moscow then raised the price by 80%: initially it went up from $268.5 per 1,000 cubic metres (pcm) to $385.5 because of unpaid bills, then up to $485, much higher than the market level, ostensibly because of the introduction of an export duty on gas. | In April, the government in Moscow then raised the price by 80%: initially it went up from $268.5 per 1,000 cubic metres (pcm) to $385.5 because of unpaid bills, then up to $485, much higher than the market level, ostensibly because of the introduction of an export duty on gas. |
| Ukraine said the only reason for the price rise was politics, although Gazprom insisted it wanted its bills paid and offered a lower price. | Ukraine said the only reason for the price rise was politics, although Gazprom insisted it wanted its bills paid and offered a lower price. |
| However, there was concern last month when gas supplies to Poland, Slovakia and Germany mysteriously dropped. This was seen by some as a warning signal not to extend EU sanctions on Russia, and also not to sell on to Ukraine some of the gas it was receiving from Russia. | However, there was concern last month when gas supplies to Poland, Slovakia and Germany mysteriously dropped. This was seen by some as a warning signal not to extend EU sanctions on Russia, and also not to sell on to Ukraine some of the gas it was receiving from Russia. |
| Are Europeans at risk of freezing because of the row? | Are Europeans at risk of freezing because of the row? |
| There's certainly a risk that supplies could be affected. They were, after all, in the pricing rows of 2006 and the winter of 2008-09. | There's certainly a risk that supplies could be affected. They were, after all, in the pricing rows of 2006 and the winter of 2008-09. |
| And with winter ahead, urgently sorting out the gas row was seen as a key reason why the EU delayed last month the implementation of a free trade deal with Ukraine until December 2015 at the earliest. | And with winter ahead, urgently sorting out the gas row was seen as a key reason why the EU delayed last month the implementation of a free trade deal with Ukraine until December 2015 at the earliest. |
| After carrying out a series of "stress tests" on 38 European countries, the EU has warned that any prolonged disruption of Russia's gas supply could leave private households "out in the cold". Worst hit would be Finland and Estonia and the non-EU Balkan states of Serbia, Bosnia-Hercegovina and Macedonia. | |
| The Baltics, Slovakia and Hungary are among other EU states that rely heavily on Russian supplies. | |
| But the European Commission says if countries work together rather than adopting "purely national measures" then fewer consumers would be hit. | |
| Although Russia can avoid supplying Ukraine directly, several EU countries have passed on part of their gas supply to Ukraine through a process known as reverse flow. | Although Russia can avoid supplying Ukraine directly, several EU countries have passed on part of their gas supply to Ukraine through a process known as reverse flow. |
| Can Russia avoid sending its gas through Ukraine? | Can Russia avoid sending its gas through Ukraine? |
| That is what is trying to do. One of its biggest projects is South Stream, which runs through Bulgaria and Hungary, among a number of EU states. | That is what is trying to do. One of its biggest projects is South Stream, which runs through Bulgaria and Hungary, among a number of EU states. |
| Can Ukraine gets its gas elsewhere? | Can Ukraine gets its gas elsewhere? |
| Since Ukraine's Russian supply was cut off, it has worked hard to find alternative European providers in Germany, the Czech Republic, Slovakia and Poland. Slovakia's Eustream has pledged to provide Ukraine with 10bcm of gas per year while Germany's RWE predicts it will supply a similar amount. | Since Ukraine's Russian supply was cut off, it has worked hard to find alternative European providers in Germany, the Czech Republic, Slovakia and Poland. Slovakia's Eustream has pledged to provide Ukraine with 10bcm of gas per year while Germany's RWE predicts it will supply a similar amount. |
| Norway's Statoil has signed a deal but has refused to disclose the volume and cost, apparently to avoid harming its efforts to tap the energy fields of the Arctic. Hungary was also providing Ukraine with gas until it announced in late September it was bringing the practice to an end. | Norway's Statoil has signed a deal but has refused to disclose the volume and cost, apparently to avoid harming its efforts to tap the energy fields of the Arctic. Hungary was also providing Ukraine with gas until it announced in late September it was bringing the practice to an end. |
| How much more does it need? | How much more does it need? |
| Ukraine consumes about 50 billion cubic metres (bcm) of gas per year, producing about 20bcm but importing the rest. Gazprom officials believe Ukraine needs 18bcm to heat its population during the winter. | Ukraine consumes about 50 billion cubic metres (bcm) of gas per year, producing about 20bcm but importing the rest. Gazprom officials believe Ukraine needs 18bcm to heat its population during the winter. |
| While the figures are unconfirmed, Ukraine's gas transit authority says it has stored 16.7bcm of gas underground. | While the figures are unconfirmed, Ukraine's gas transit authority says it has stored 16.7bcm of gas underground. |
| It has succeeded in buying in supplies from several neighbours but still needs about 5bcm from Russia. | It has succeeded in buying in supplies from several neighbours but still needs about 5bcm from Russia. |
| Can they reach a deal? | Can they reach a deal? |
| Ukraine's President Petro Poroshenko has said a deal is "very close" and believes it will be discussed in Milan with Russia's President Vladimir Putin on 17 October. The negotiators are due to meet in Berlin on 21 October for the first time since last month. | Ukraine's President Petro Poroshenko has said a deal is "very close" and believes it will be discussed in Milan with Russia's President Vladimir Putin on 17 October. The negotiators are due to meet in Berlin on 21 October for the first time since last month. |
| The main bone of contention for Russia is the initial payment and the period over which the rest of the debt is repaid. For Ukraine, a key component is the price of future supplies. | The main bone of contention for Russia is the initial payment and the period over which the rest of the debt is repaid. For Ukraine, a key component is the price of future supplies. |
| An EU-brokered compromise is on the table but both sides are haggling over the detail. | An EU-brokered compromise is on the table but both sides are haggling over the detail. |
| So what are the terms? | So what are the terms? |
| It looks as if Russia will agree to cut the initial debt repayment demand from December 2013 from $1.95bn to $1.451bn as long as Ukraine pays in advance for new gas. However, the devil lies in the detail, as a European Commission spokeswoman told the BBC. | It looks as if Russia will agree to cut the initial debt repayment demand from December 2013 from $1.95bn to $1.451bn as long as Ukraine pays in advance for new gas. However, the devil lies in the detail, as a European Commission spokeswoman told the BBC. |
| Under EU proposals | Under EU proposals |
| Would that be the end of it? | Would that be the end of it? |
| Not quite. | Not quite. |
| When the dispute erupted, Russia and Ukraine both took their cases to an international arbitration court at the Stockholm Chamber of Commerce. However, a final decision on the price and debt repayable is only expected next summer. | When the dispute erupted, Russia and Ukraine both took their cases to an international arbitration court at the Stockholm Chamber of Commerce. However, a final decision on the price and debt repayable is only expected next summer. |