EU, Ukraine, Russia Agree on October-March Gas Supplies

Three-way talks involving the EU, Russia and Ukraine have ended with an agreement on the terms of gas supplies between October this year and March 2016, the EU Commission has said.

Ukraine will be committed to securing transit via its territory to the EU, while Russia will lower prices at which it is selling gas to Ukraine by decreasing the export duty, the Commission has said in a statement.

Brussels, on the other hand, will engage in securing the financing for gas purchases, with "at least USD 500 M" to be available by end of the year.

Kiev will have to buy some 2 billion cubic meters from Russia and inject them into its depots to help maintain pressure along the Russia-Europe pipeline system, both the Commission and the Russian Energy Ministry have confirmed.

EU Energy Union Commissioner Maroš Šefčovič, who took part in the talks on behalf of the Commission, hailed on Friday evening the development as a "major achievement".

However, a separate procedure will be needed to sign a definitive document - a process which is said to be likely next month.

Friday's meeting has been one of a series held between Russia, Ukraine, and the EU, since Moscow scrapped gas price discounts for Kiev in the spring of last year and later introduced a prepayment system.