January 11, 2009 / 9:57 PM / 10 years ago

FACTBOX-Russia rejects Kiev additions to gas monitoring deal

MOSCOW, Jan 11 (Reuters) - A Russian-Ukrainian deal to restore Russian gas supplies via Ukraine to Europe appeared on the verge of collapse on Sunday after Moscow rejected additions by Kiev.

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Russia, Ukraine and the European Union signed an agreement allowing monitors to oversee transit gas shipped to Europe.

A scanned copy of the monitoring agreement, seen by Reuters, has the handwritten words “with declaration attached” next to the signature of the Ukrainian government’s representative.

Following are some key points from the attached Ukrainian declaration, on which Moscow and Kiev disagree:

1) UKRAINIAN TEXT - “Ukraine has always been and remains a reliable transit country and has not interrupted transit of gas to the EU member states”.

RUSSIAN POSITION - Moscow accuses Kiev of halting supplies of Russian transit gas to the EU after Moscow cut off supplies to Ukraine because of a pricing dispute.

2) UKRAINIAN TEXT - “Ukraine has not made any non-contractual gas take-offs in 2009”.

RUSSIAN POSITION - Russian gas export monopoly Gazprom (GAZP.MM) accuses Kiev of stealing at least 65 million cubic metres of gas this year. Kiev says it was technical gas needed to maintain pressure in the gas transit system.

3) UKRAINIAN TEXT - “Ukraine has no debts to Gazprom and reached a financial settlement for all gas consumed.”

RUSSIAN POSITION - Gazprom says Ukraine paid some $1.5 billion for supplies in 2008 but still owes it some $614 million in fines.

4) UKRAINIAN TEXT - “The EU side is expected to provide a general coordination of activity of the observers designated by the EU member states; those observers, including experts designated by the European companies, shall report to the EU side. The Ukrainian side emphasises that Gazprom is a shareholder in some of those companies, which could lead to a conflict of interest”.

RUSSIAN POSITION - Gazprom says the presence of major European gas importers is necessary even if it holds stakes in those companies.

5) UKRAINIAN TEXT - “The transit of Russian natural gas to European consumers through the territory of Ukraine shall be provided along with the delivery by the Russian side of 6.4 billion cubic metres per annum of the technical gas or 21 million daily”.

RUSSIAN POSITION — Gazprom says Ukraine must buy this gas from Gazprom or other firms. It says the request for technical gas is “an attempt by Ukrainian authorities to legalise theft of gas”.

6) UKRAINIAN TEXT - “These rules of procedure shall remain in force for a period of 30 days. These rules of procedure can be renewed for another 30-day period if the parties deem it necessary”.

RUSSIAN POSITION - Gazprom says the rules should remain in force longer, but doesn’t say for how long. (Reporting by Dmitry Zhdannikov; editing by Tim Pearce)

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