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RUSSIA CUTS OFF GAS SUPPLIES TO UKRAINE

naijalog by naijalog
June 16, 2014
in World News
Reading Time: 1 min read
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RUSSIA CUTS OFF GAS SUPPLIES TO UKRAINE
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Ukraine’s energy minister says Russia has cut off all natural gas supplies to his country, adding however that he guarantees reliable gas flows will continue to Russia’s European clients who get imports through pipelines via Ukraine.

Ukraine faced the threat of Gazprom, the Russian natural gas producer, cutting off supplies when a 06:00 GMT deadline passed on Monday after talks on a long-running gas-pricing dispute failed to produce a breakthrough.

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“We have an announcement to make today that gas supplies to Ukraine have been reduced to zero,” Yuri Prodan, the energy minister, said in Kiev.

Gazprom said it was not extending the deadline for Ukraine to start paying off its gas debts after the discussions ended in the early hours of Monday morning in Kiev.

The outcome is likely to increase political tensions that have mounted in the past few days between Ukraine and Russia as Ukrainian government forces clashed heavily with pro-Russian separatists in east Ukraine. Russia says Ukraine has a total of more than $4bn in gas debts.

“The Russian side is expecting payment of the accumulated gas debt of $1.95bn before 10am [06:00 GMT] on June 16,” Sergei Kupriyanov, Gazprom spokesman, said earlier.

“If the funds are not paid, gas supplies will, as was announced earlier, be switched to a pre-payment system.”

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