EU proposes deal to ensure Ukraine gas supplies

A top European Union official proposed a deal Friday that would see Ukraine repay some of its gas debt to Russia in exchange for guaranteed gas deliveries over the harsh winter months, The Associated Press reported.

The plan outlined by EU Energy Commissioner Guenther Oettinger came after meetings with the Russian and Ukrainian energy ministers in Berlin.

Oettinger billed the idea as a "winter package" - something to take Ukraine through the coming months while the question of past and future gas prices would be resolved at an arbitration court in Stockholm.

Oettinger told reporters that under the proposal, Kiev would pay $2 billion to Moscow by the end of October and another $1.1 billion by the end of December.

In exchange, Russian gas company Gazprom would supply at least 5 billion cubic meters of gas to Ukraine over the coming months at $385 per 1,000 cubic meters. Ukraine would have to prepay for that new gas.

Oettinger said he wants to have clarity next week on whether the two sides accept, and plans to bring them together again in Berlin late next week. Both sides are now to discuss the proposal with their capitals.