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OIL AND GAS
Russia offers energy assurances to Europe
by Daniel J. Graeber
Moscow (UPI) Aug 28, 2014


Putin puts blame for gas dispute on Kiev
Minsk, Belarus (UPI) Aug 27, 2014 - Russian President Vladimir Putin said Wednesday his hands are tied in terms of the dispute over natural gas to Ukraine because of pending court issues.

The Ukrainian government filed a case in an international court of arbitration challenging the gas bills sent by Russian energy company Gazprom. In April, Gazprom sent Ukraine an $11 billion bill for not taking enough gas in 2013 under a take-or-pay contract.

Putin said from Minsk, where he met directly with Ukrainian President Petro Poroshenko, that settling the gas issue would have to wait.

"Right now, we cannot even accept any suggestions regarding preferential terms, given that Ukraine has appealed to the arbitration court," he said.

Gazprom suspended gas deliveries to Ukraine because of the debt issue. With Ukraine hosting the bulk of the Russian gas transits to Europe, the Kremlin has warned European leaders the region's energy security is at risk because of Ukraine's debts.

Poroshenko offered no direct comment on the gas issue other than to say trilateral talks with his European and Russian counterparts was scheduled Sept. 6.

Russian Energy Minister Alexander Novak said he was standing by European energy needs despite the ongoing turmoil in Ukraine.

Energy companies reviewing Ukrainian shale natural gas reserves suspended operations because of conflict in the east of the country. Kiev said Thursday the border city of Novoazovsk fell to pro-Russian separatists.

Europe relies on Russia for about a quarter of its natural gas needs, though nearly all of that runs through the Soviet-era pipeline network in Ukraine.

Novak said Wednesday there was no threat to European energy security.

"I would like to stress that Russia's stance on this issue remains unchanged," he said. "We will make maximum efforts to fulfill our contract obligations to European importers regardless of current political situation in this or that transit nation."

Russian President Vladimir Putin said from Belarus there were few options for Ukraine itself because of pending debt issues tied up in an international court of arbitration. Russian energy company Gazprom says Ukraine owes it billions of dollars in unpaid debt.

Members of the European Union met with their Russian and Ukrainian counterparts in Minsk in an effort to find a political solution to the crisis. Trilateral energy talks are scheduled next week.

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