EU taxpayers are ready to buy gas for Ukraine

Russia and the EU have agreed to supply natural gas to Ukraine. Accordingly, EU taxpayers must provide Ukraine with a loan of half a billion euros. The money will go directly to the blocked account of Gazprom.

EU taxpayers are ready to take responsibility for the implementation of gas supplies to Ukraine in the winter. Russian Energy Minister Alexander Novak confirmed that this decision was the result of a meeting between the EU and Russia in Vienna. If certainty has appeared in the situation with gas, then only electricity generators can provide stable power supply to some regions, and given that thermal coal is not solved, then everyone can face this problem.

As a result of the agreement, the EU is forced to transfer 500 million euros to Russian Gazprom, which is an advance payment for the fourth quarter of 2015 and the first quarter of 2016. Russia has provided Ukraine with a discount. Ukraine is expected to agree to the price offered by Russia, although Kiev recently called for an even larger discount. However, the head of Ukraine's gas company, Naftogaz, Andriy Kobolev hinted that Ukraine could accept the deal in the near future.

Ukraine needs urgent filling of storage facilities in order to pass the winter period. There has already been a two-week delay. This volume of gas supply to Ukraine covers about half of the demand. Therefore, 500 million euros must be received again. Ukraine itself has no money to pay for gas. At the same time, there are good chances to impose the second tranche on European taxpayers, since they do not want to have problems with gas supplies again in winter.

The amount may also increase further in case the winter period is colder than last winter. Alexey Miller said that Russia expects that this volume will be sufficient for an "exceptionally cold" winter.

The agreement is seen as another sign of rapprochement between the EU and Russia. It is worth noting that Russia, despite the ongoing hostile tone from Kiev, is giving a discount, as noted by German media. Federal Foreign Minister Frank-Walter Steinmeier said after Saturday's meeting that the chances of de-escalation in Ukraine are "as good as ever."