×
×
Project Insights

Russia-Ukraine deal close, but key issues remain

Ukraine could be about to restart imports of Russian gas this month, but it will be unable to use multilateral bank funding Ukraine could be about to restart imports of Russian gas this month, but it will be unable to use multilateral bank funding.
By Alexey Yegorov, Dmitry Koshevoi and Joshua Posaner 4 July 2016 Europe & Russia / Supply & Demand 0 20918
A Ukrainian compressor station. Russia and Ukraine are close to restarting supplies. (Naftogaz Ukrainy)

Ukraine and Russia appear closer than ever to reaching a deal to resume Gazprom supplies, but although price estimates are now broadly harmonised, questions of volume and debt financing are still open for debate.

Naftogaz Ukrainy officials have continued to suggest that imports of Russian gas – which Ukraine suspended in November 2015 in favour of cheaper deliveries from EU countries – could resume in the third quarter of this year.

However, Naftogaz Chief Executive Andriy Kobolev indicated on national television on Thursday that Gazprom’s initial offer...