Gazprom: Ukraine Gas Supplies Will Halt Monday Without Payment

CEO Urges Ukraine to Pay Its Bills

by Jason Ditz, June 12, 2014

Ukraine managed to duck a gas shutoff earlier this month, but after the latest round of talks on their debt and pricing disputes with Russian exporter Gazprom ended in a stalemate, they’re facing another.

Gazprom CEO Alexei Miller warned today that because of Ukraine’s sizable debt they are on a prepayment system, and if they don’t prepay for any gas, they won’t receive any.

“If Ukraine pays for no volume at all, it means that gas shipments to Ukraine will be zero,” Miller noted. Ukraine’s government has spurned the prepayment scheme, and complained about Gazprom’s plan to charge them the same rate as other European nations, $485 per 1,000 cubic meters.

The last round of talks centered on the price issue, with Russian officials offering $385 per, and Ukraine insisting they would pay no more than $268.50, the level the previous Ukrainian government was paying.

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