Ukraine seeks financial help from EU

Ukraine has requested an additional 2.55 billion dollar loan from the European Union in order to pay off its gas debt to Russia.

European Commission spokesman Simon O’Connor said on Tuesday that Ukrainian authorities made the request as they met with Russian and EU officials to resolve a gas price dispute.

O’Connor went on to say the EU’s executive body will consider the request along with the International Monetary Fund (IMF).

“The commission remains very committed to supporting Ukraine in line with earlier commitments,” he added.

Ukraine’s Energy Minister Yuri Prodan was in Brussels on Tuesday for talks with his Russian counterpart Alexander Novak and the European Energy Commissioner Guenther Oettinger in an attempt to resolve the dispute over Kiev’s unpaid gas debts to Russia.

Russia cut off gas deliveries to Ukraine after Kiev failed to make a 1.95-billion dollar payment of its 5.2-billion dollar debt before the June 16 deadline.

During a visit to Serbia on Thursday, Russia’s President Vladimir Putin warned of “major transit risks” to Europe’s gas supplies from his country this winter unless Ukraine settles the gas dispute with Moscow.

European leaders are concerned over the gas row as Moscow provides 30 percent of Europe’s total gas demand with key pipelines on Ukrainian territory. Ukraine itself is also at the risk of facing gas shortage in the winter if the mooted disagreement is not resolved.

SRK/MHB/AS