Ukraine will receive Russian gas with prepayment - EC act as the guarantor.

EU slowly becoming a black hole absorbing all wealth from Europe's member states.

Ukraine will receive Russian gas with prepayment - EC act as the guarantor. (Economics). [GoogleTranslate].

Participants in the tripartite talks in Brussels agreed on a phased repayment of Ukraine's debt to Russia for gas at a rate of 3.1 billion dollars.

UNIAN reported party gas talks in Brussels on condition of anonymity.

According to him, during the negotiations, "If we talk about the financial side, it was important for us to move away from the position of" take or pay ". These five months will be the principle of "pay and take it." 

The idea is: for how much we have the resources for such amount we buy volumes of Russian gas. "

"We have also agreed on the mechanisms of debt repayment in the amount of 3.1 billion dollars. This is money that the IMF provided and which are reserved to the account of the Ukrainian government for the payment of this debt. We will pay this amount, but it is tied to the overall package of agreements. Payment will be phased to be clearly spelled out in a tripartite by mandatory protocol to be signed on behalf of the Government of the Russian Federation, Ukraine and the EC. "

As for the purchase of new volumes of gas, according to the interlocutor, "there are different options, which include assistance from international financial institutions."

A European Commission will act as the guarantor of a fair price for Russian gas.

an UNIAN correspondent, said this during a meeting of the government of Prime Minister of Ukraine Yatsenyuk.

The price of fuel will be determined by a formula which takes into account the price of oil. "Thus, in the last quarter of 2014 the price will be at the level of 378 dollars per thousand cubic meters, while in the first quarter of 2015 - at $ 365," - said Yatsenyuk.

"We are not concerned with the question of how Russia will decide on the establishment of a fair price for gas. If Russia will affect the pricing procedure and will try again to put the price at $ 500., As proposed, we reached agreement with the European Commission that the European Commission is the guarantor of the obligations Russia at a fair price, including through the mechanism of compensation increase of prices, if such price will not match a tripartite protocol signed between the European Union, Ukraine and Russia ", - said Yatsenyuk.

He added that the signing of this protocol is only possible at the tripartite level - the European Union, Ukraine and Russia. In turn, the basic approach to the determination of a fair price for Russian fuel, said Yatsenyuk, Ukraine and the EU have announced another 4 months ago.

"The basic approach, which we announced 4 months ago, in the summer season, the price is $ 325. Per thousand cubic meters in the winter - to $ 385. Per thousand cubic meters," - said the head of government.

However, the final point in the issue price will deliver, according to Yatsenyuk, Stockholm arbitration court. "The final decision on gas contracts will Stockholm arbitration court," - said the prime minister.

As UNIAN reported earlier, Prime Minister Yatsenyuk noted that Ukraine insists on formular determining gas prices based on oil prices. In this regard, according to the calculations of the Ukrainian government, the price of Russian gas to the end of the year should reach $ 378. Per thousand cubic meters, while in the first quarter of 2015 - not above $ 365. Per thousand cubic meters. Furthermore, the volumes of gas supplies to Ukraine shall determine, and the payment of fuel will be prepaid.

Also, according to Yatseniuk, Ukraine insists on the rejection of the principle of "take or pay" and to transfer payment for gas transit on account of "Naftogaz".

In addition, Yatsenyuk noted that the price of gas is already supplied to Ukraine, shall not exceed $ 268. Per thousand cubic meters, and Ukraine has the necessary reserve funds - in the amount of $ 3.1 billion. - To pay for the fuel already delivered.

The European Commission also confirmed that they are willing to act as guarantor of the Russian gas price for Ukraine, and in the amount of $ 385. Per thousand. Cu.

As UNIAN reported negotiators "for the Ukrainian side was the key to get the guarantee immutability so-called winter gas prices on the part of the Russian Federation - 385 dollars.

According to the source, the solution of this problem is that even if Russia unilaterally raise the price of gas, the tripartite protocol to be signed between Ukraine, EU and Russia, Kiev guarantees compensation for the difference in price.  Hmmm.......Reads almost like 'Peace in our time' . More here in Russian.

The current arrangements are valid only for the period of November, 1, 2014 - March, 31, 2015.
— Минэнерго России (@MinenergoGov) October 30, 2014