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Ukraine rejects Putin’s offer of gas discounts

By WTOP Staff

JOHN-THOR DAHLBURG
Associated Press

MOSCOW (AP) — Russia on Wednesday offered to restore the discounted gas price it granted Ukraine under the ousted pro-Russian president, but Ukraine demanded an even better deal and called for arbitration to settle the dispute.

Speaking in Moscow, Russian President Vladimir Putin said Russia was offering the discount as a “partnership deal.” Russia’s energy minister, Alexander Novak, specified the price offered as $385 per 1,000 cubic meters of gas.

“We believe that our offer is more than in a partnership spirit, aimed to support the Ukrainian economy at a rather difficult time,” Putin said in televised remarks. “But if our offers are rejected it means we will enter another stage. This is not our choice. We do not want it.”

Russia and Ukraine have been locked for months in a dispute over the price of Russian gas supplies and Ukraine’s debt for previous deliveries. Moscow has threatened to turn off the tap if Ukraine fails to settle the multibillion-dollar debt, but has repeatedly pushed back the deadline after Ukraine paid off part of the sum.

European Union-brokered talks between the two countries in Brussels on Wednesday failed to reach a compromise over the price.

The bruising gas dispute comes amid continuing fighting in eastern Ukraine, where government forces have battled pro-Russian rebels for two months. The insurgents have pushed for joining Russia following Moscow’s annexation of Ukraine’s Crimean peninsula in March, but Putin has ignored their appeal in an apparent bid to avoid another round of crippling Western sanctions.

Putin also seemed eager to avoid cutting off gas to Ukraine, a move that would likely disrupt shipments to European customers via pipelines crossing Ukrainian territory.

He emphasized Wednesday that the latest offer would restore the price Ukraine had under pro-Russian President Viktor Yanukovych.

In December, Russia offered Ukraine an even lower price of $268 as it sought to give a financial lifeline to Yanukovych, who was facing massive protests triggered by his decision to ditch a pact with the European Union and opt for closer ties with Moscow.

After Yanukovych was chased from power in February, Russia denounced his ouster as a “coup” and annulled all gas discounts, bringing the price back to $485 per 1,000 cubic meters, in line with a 2009 contract.

Ukraine has refused to pay for Russian gas, calling the price politically motivated and demanding that Moscow lower it.

Ukraine’s Energy Minister Yuri Prodan told reporters after the talks in Brussels that the price discount offered by Russia isn’t enough and demanded an even lower price. He said the Ukrainian government now believes that arbitration is the best option to solve the dispute.

Prodan, however, added that Ukraine is open to talks to hammer out a temporary price while arbitration is proceeding.

Despite the sharp disagreements, EU Energy Commissioner Guenther Oettinger, who is involved in the talks, said he hopes the parties will make progress in the next 48 hours.

“I can see movement on both sides, and both sides will need to continue to move,” he told reporters. “There are differences of opinion … and we’re talking about billions.”

Oettinger said that he has drawn up a draft agreement on the EU’s behalf that he hopes both Russia and Ukraine can ultimately agree to, including a temporary “$385 minus” price tag.

He said the final price will depend on two factors: the volume of Russian gas purchased by Ukraine, and the length of the agreement, which he has suggested should be 15 months. That would be enough for Ukraine to see through the winter of 2014-2015 and allow it to build up its reserves for another winter.

Oettinger said that Putin and Ukraine’s President Petro Poroshenko are to discuss the issue, but the Kremlin said there is no immediate plan for such talks.

Ukrainian Prime Minister Arseniy Yatsenyuk earlier Wednesday said that Kiev initially rejected the Russian offer because there was no guarantee that it would last. Putin and Novak responded by saying that Russia was ready to guarantee the discounts would remain in place for one year.

Gazprom, Russia’s gas giant, gave Ukraine a few more days to settle its gas debt before it would start demanding prepayment for gas, without which it has threatened to cut off supplies. Gazprom’s CEO Alexei Miller said the deadline would be pushed forward to next Monday.

Georg Zachmann, a research fellow at Bruegel, a Brussels-based think tank that specializes in economic affairs, said that despite the impasse, Russia and Ukraine will likely finally come to agreement.

“There are large sums of money involved so they are fighting hard for that,” Zachmann said. But in the end, he said, “everybody would lose” from a cutoff of Russian gas to Ukraine that could also disrupt supplies to the EU.

___

Dahlburg reported from Brussels. Vladimir Isachenkov in Moscow contributed to this report.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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