Tentative Gas Deals Still Leave Payment Issue Unclarified

Ukrainian President Petro Poroshenko confirmed that a tentative gas deal had been reached with Russia following talks in Milan on Friday.

In an interview with Ukrainian TV on Saturday, Poroshenko said that Ukraine has agreed to a price at $385 per 1,000 cubic meters to be in place until March 31, 2015.

However, the arrangements for the payment for Ukraine’s outstanding gas debt to Russia still had to be clarified.  Russia has said the resumption of gas flow to Ukraine would be contingent upon the payment of amounts in arrears.

Poroshenko said Ukraine may require international help in making payment to Russia, as state-run energy company Naftogaz was short of funds.

"We must solve the question of how we cover the deficit of funds for Naftogaz for gas purchases," Poroshenko said. "We have several different options [including] the International Monetary Fund."

A delegation from the IMF is due to arrive in Kiev in mid-November.

Ukrainian authorities said that the next rounds of tripartite gas talks are planned for Oct. 21 in Brussels.