Gas tanks are pictured at Austria's largest natural gas import and distribution station in Baumgarten May 2, 2014.
Gas tanks are pictured at Austria's largest natural gas import and distribution station in Baumgarten May 2, 2014. Austria rescued Gazprom's South Stream pipeline project last month so it can bring its own gas from the Black Sea, a source told Reuters, which will be the first time the Russian gas exporter has agreed a competitor's gas access to its pipelines. Picture taken May 2. To match story Reuters

Ukraine is under heavy pressure to sign an EU-brokered agreement with Russia on gas supplies. The Berlin meeting on Friday failed to resolve the impasse but it was rich with signals for a compromise. Russia is ready to restore gas supplies to Ukraine, which it stopped in June, under certain conditions. While briefing the media, EU Energy Commissioner Guenther Oettinger said he and Russia's energy minister did work out an agreement that can be signed next week, after further consultations in Moscow and Kiev, reports AFP.

Ukraine Adamant

The negotiations broke down after Ukraine started resisting Russia's demands. Its officials rejected Moscow's claim that Kiev owed billions of dollars in debt and a revision of gas prices was due. The chief of Ukraine's state energy firm Naftogaz, Andriy Kobolev, wrote on Facebook that no final decision has been taken and no document has been signed.

However, the Wall Street Journal reported that Ukraine will ink the deal. There is huge pressure from the EU and it is also feeling the heat of economic pain back home. Under a compromise deal, the two sides agreed that Ukraine would pay $3.1 billion in debt by the end of the year in return for Gazprom's resumed deliveries for the winter at a higher price.

Compromise Deal

EU Energy Commissiner Oettinger brokered the compromise deal and cajoled Russia to supply at least 5.0 billion cubic metres of gas for Ukraine to tide over the winter months after paying 3.1 billion.

Russia agreed for a discounted price of 385 per 1,000 cubic metres, which is 20 per cent less than what it demanded from Ukraine in the past. But Moscow reiterated that the rate of $385 rate was just a discounted price, valid until the next spring.

Russia Hopeful

Russian Energy Minister Alexander Novak was quoted by the Vesti 24 state news channel that chances of a deal are high. But Ukrainian Energy Minister Yuriy Prodan told AFP that many disagreements still exist.

Europe imports nearly 15 percent of the Russian gas through the pipelines of Ukraine. Many EU states like Italy are reliant on the Ukrainian link for their Russian supplies. They fear that an energy starved Kiev may dip into their shares once the winter gets severe. That make EU more keen on a Russia-Ukraine gas deal.