The winter package comprises two documents which include a binding protocol, signed by the European Commission, Russia, and Ukraine, as well as an addendum to the existing gas supply contract, signed by Russia’s Gazprom and Naftogaz of Ukraine.
EC president José Manuel Barroso said: "With our strong support, Ukraine and Russia have today found agreement on their outstanding energy debt issues, and on an interim solution that enables supplies to continue this winter."
EC vice-president Günther Oettinger said: "This breakthrough will not only make sure that Ukraine will have sufficient heating in the dead of the winter. It is also a contribution to the de-escalation between Russia and Ukraine."
The package, which is effective from now until the end of March 2015, also enables Ukraine to order as much as gas required.
As part the package, Ukraine can pay its debts based on a preliminary price of $268.5/1000m3 in two tranches, $1.45bn without delay, and $1.65bn by the end of the year 2014.
The debt’s final price and thus the final sum will be determined through the pending arbitration by the Arbitration Institute of the Stockholm Chamber of Commerce between Gazprom and Naftogaz.
Ukraine is seeking to purchase 4 bcm until the end of the year 2014 for less than $385/1000m3 and calculated according to a formula in the present contract and a price reduction through a discount in export duties by the Russian Federation.
