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11/21/2024 06:18:06 pm

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Russia Slaps Ukraine With New Terms On Gas Deal At EU Talks

Russian President Vladimir Putin Meets Ukrainian President Petro Poroshenko

(Photo : Reuters/Daniel Dal Zennaro) Russia's President Vladimir Putin (L) shakes hands with Ukraine's President Petro Poroshenko during the breakfast meeting on the sidelines of the 10th Europe-Asia summit (ASEM) in Milan October 17, 2014.

Russia slapped Ukraine with new conditions, demanding the former Soviet territory to present evidence of its ability to pay when both countries failed to secure a gas deal Tuesday in Brussels after Moscow raised new conditions for resuming gas supplies to Kiev.

During the talks over the weekend, Russian President Vladimir Putin and Ukraine's Prime Minister Petro Poroshenko settled with a broad interim agreement, but issues concerning how, when and how much of the gas debt would be paid continue to embroil both countries in a bitter deadlock.

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Russian Energy Minister Alexander Novak said Moscow is concerned about how Kiev would find the money to settle its gas debt. He said he is looking for assurances that the EU, International Monetary Fund or European Commission would help pay Kiev's bills, the Financial Times reported.

He added that as a pre-condition for resumed gas supplies, Kiev must first pay off a portion of its outstanding debt to Russian-run OAO Gazprom and present advance payments for deliveries on November and December.

Ukraine earlier agreed to pay OAO Gazprom US$3.1 billion for its previous deliveries and said it would settle payments in two installments this year: US$1.45 billion by the end of the month and the rest by the end of the year.

Reuters said that Ukraine is dependent on the European Union for aid.

Early Tuesday, Kiev requested the EU for 2 billion euros or US$2.55 billion in credit. EU's energy chief Günther Oettinger said the 28-nation bloc would do their part in assisting their Ukrainian partner.

The European Union-brokered talks will resume on October 29, in which Russia is expected to announce whether it is satisfied with Ukraine's gas payment plan.next week in hopes of signing a final agreement to tide Ukraine over the coming winter months.

In June, Moscow cut off Kiev's gas supplies in June amid a dispute questioning its ability to pay its debts totaling to US$5 billion for gas delivered from 2013 to 2014.

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