Russian Gas Deadline Arrives Negotiations Ongoing

Natural gas supplies to Ukraine and the European Union were stable on Tuesday after a Russian deadline passed for Kiev to pay off some of its debts or face a supply cut, sources at Russian exporter Gazprom said.

The gas dispute is at the heart of a crisis between Russia and Ukraine, and failing to resolve it would fuel tensions and set back peace moves that are gaining momentum after weeks of violence in east Ukraine.

Russia had given Ukraine until 10:00 a.m. (0600 GMT) to pay, but seemed to have pulled back from the deadline after officials said gas talks brokered by the European Commission would continue in Brussels later on Tuesday or Wednesday.

With Ukraine looking poised to pay off more of its debt, talks have stalled on price, threatening possible supply disruptions to the European Union, which gets about a third of its gas imports from Russia, almost half of it via Ukraine.

A source at Gazprom said Russia was supplying Ukraine with the usual volumes of gas, and may have even increased it recently.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza