Russia, Ukraine, EU Continue Negotiations over Gas Prices

Three-party gas negotiations between Russia, Ukraine, and the European Union will continue on Tuesday in Brussels after the sides failed to reach an agreement on Monday.

The main issues are Ukraine's gas debt and the future prices. Gazprom has warned that if Kiev doesn't repay its USD 5.2B debt, it can stop the delivery.

Meanwhile, Russia has set a new price of USD 485 per 1,000 cubic meters, amending the previously agreed USD 285, in response to the ousting of the former President Viktor Yanukovych.

Russia also obliged Ukraine to pre-pay its import of gas starting June.

European Commissioner for Energy Guenther Oettinger revealed that the sides had long talks on Monday, which lasted into the night, but still many questions and differences in positions remained, ITAR-TASS informed.

The European Union is worried about a potential gas crisis resulting from the dispute between Russia and Ukraine. It is believed that Commissioner Oettinger is trying to negotiate a middle price for the gas, to satisfy the demands of both sides.