European Union expects stable gas supply even as Russian shipments yet to start

The European Union expects stablegas supplies this winter under a deal by Russia and Ukraine, asenior EU energy official said, even while Moscow has yet toresume shipments and Kiev has yet to pay in advance as agreed.

Russia provides a third of European Union gas supplies, andhalf of that volume flows through Ukraine. Previous spatsbetween Kiev and Moscow led to temporary supply cuts to Europe.

Ukraine and Russia signed an agreement, brokered by theEuropean Commission, at the end of October to cover gas suppliesover the winter as a temporary solution to a long-standing pricedispute between Moscow and Kiev.

But Russian gas producer Gazprom has not resumedshipments, suspended in June, and Ukraine has not provided thepre-payment that Moscow says is a condition for restartingsupply.

"So far, everything is in order," Maros Sefcovic, theEuropean Commission's new energy chief, told reporters onThursday on the sidelines of an international energy conferencein Kazakhstan's capital Astana.

"We are in close and, I would even say, everyday contactwith both Ukraine and the Russian Federation, and I hope that wewill have no problem with gas this winter," he said in Russian.

Sefcovic's comments were among the first from newlyappointed members of the EU executive body on the gas supplyissue.

Under the EU-brokered deal, Ukrainian state firm Naftogazhas agreed to pay Gazprom $2.2 billion in debt and upfrontpayments before supplies resume.

Naftogaz has transferred the first $1.45 billion tranche ofthe payment, but it has not said when it will place new orders,nor for what volume.

Naftogaz Chief Executive Andriy Kobolev said on Monday thatUkraine planned to buy 1 billion cubic metres (bcm) of gas fromRussia by the end of the year and up to that amount monthlythrough the winter.

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European Union expects stable gas supply even as Russian shipments yet to start

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