Russia and Ukraine must seek compromise in gas dispute

(ANSA) - Brussels, June 11 - Ukraine and Russia must continue negotiations to reach an agreement on gas pricing before June 16, EU Energy Commissioner Guenther Oettinger said Wednesday following the apparent collapse of talks in Brussels.
    Guenther has been mediating in the pricing dispute that began following Russia's annexation of Crimea in March. Earlier Ukrainian Energy Minisyer Yuri Prodan said Kiev had failed to reach an agreement with Moscow on grounds that it "rejected the discount mechanism because it is a political mechanism and not one based on the market".
    Kiev currently pays around 485 dollars per 1,000 cubic metres of gas and is asking for Moscow to lower the price to 268.5 dollars.
    For its part, Russia has offered a discount of 100 dollars.
    Ukraine would now seek international arbitration in the dispute, the minister said.
    The EU commissioner said he would do everying possible to facilitate an agreement but warned that both countries needed to seek a compromise.
    On April 1 Russian energy giant Gazprom cancelled a discount on gas deliveries awarded to ousted Ukrainian president Viktor Ianukovich last December allegedly on grounds of unpaid debt, before subsequently setting controversial new conditions for payment amid threats that it would cut off supplies. Before the apparent collapse of talks Wednesday Gazprom announced that it would extend until Monday the deadline for Ukraine to pay off part of its debt or face having to pay for its supplies up front.