Russia May Cut Off Ukraine’s Gas Supply By Later Today
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Russia has threatened to shut off its natural gas supply to Ukraine by 06:00 GMT on Monday, after last-minute talks in Kiev failed to resolve a long-running dispute over prices.
On Sunday night, a top official from Russia’s state gas firm Gazprom told AFP that the EU-brokered talks failed to bridge the two sides’ disagreements over price and that negotiators from Russia were already heading home.
Russia has threatened to shut off its natural gas supply to Ukraine by 06:00 GMT on Monday, after last-minute talks in Kiev failed to resolve a long-running dispute over prices.
On Sunday night, a top official from Russia’s state gas firm Gazprom told AFP that the EU-brokered talks failed to bridge the two sides’ disagreements over price and that negotiators from Russia were already heading home.
“We reached no agreement and the chances that we will meet again are slim,” said Sergei Kuprianov. “We are already on the plane heading back (to Moscow).”
“If we receive no pre-payment by 06:00 GMT, then we obviously will deliver no gas,” he added.
On its part, Ukraine has threatened to refer the issue to an international court of arbitration if Russia cuts off gas supplies.
“We keep our fingers crossed and hope to resolve our differences in a civilized matter,” Andriy Kobolev, head of Ukrainian state energy company Naftogaz, said in an open letter Saturday.
Ukraine receives half its gas supplies from Russia and transports 15 percent of the fuel consumed in Europe.
Kiev said heading into the negotiations that it was ready to make a $1.95 billion payment demanded by Moscow if Russia had agreed to cut its ongoing price to $326 from $485.50 for 1,000 cubic metres of gas.
But Russian President Vladimir Putin has stated that $385 per 1,000 cubic metres was his final offer.
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Kobolev said in an interview on Ukrainian television on Saturday that the country can satisfy its gas needs until the end of the summer through its own production and stored gas.
“We have a concrete plan of actions,” he added, saying that Ukraine will attempt to reduce its consumption of the energy source, as well as gain supplies from the EU and alternative sources of energy.
On the same day, Ukrainian President Petro Poroshenko urged western nations to impose further sanctions on Moscow, in retaliation for violence in the separatist-controlled city of Luhansk. 49 people were killed when separatist rebels shot down a Ukrainian military aircraft.
