With just hours remaining until the deadline for Ukraine to pay off its $1.95 billion gas debt, EU-brokered talks with Russian officials have broken down, and a shutdown of natural gas supplies seems inevitable before the day is out.
Russian natural gas company Gazprom had informed Ukraine that if the debt was not paid off, they would be moved to prepayment for future natural gas shipments starting at 6:00 AM GMT Monday, and Gazprom CEO Alexei Miller said that since Ukraine had not made any orders or prepayments, they wouldn’t get any gas at all.
Ukraine Energy Minister Yury Prodan shrugged off questions about the shutoff, insisting Ukraine was fully prepared to manage without any imports of natural gas from Russia, which provides the majority of the nation’s energy.
Ukraine’s state-run gas importer Naftogaz seemed less comfortable with that, and confirmed the EU was pushing for a compromise price somewhere between $300 and $385 for the gas. Ukraine has asked for a price of $268 per 1,000 cubic meters, while Russia offered $385. Gazprom has originally sought to charge $485, in line with what they charge the rest of Europe.
They are ready now, but what happens come October or November?
$268 per 1000 cubic meters would be insane!!! I guess the tyrants in Kiev really do want a war. Very sad!
feel for the Russians , As I too have noticed a lot of people seemed to stop liking me and even hate me after they owed me money . Pay in advance of delivery is about the only way to handle people like this . To bad the United States didn't build the keystone pipeline . We could have possibly picked up this Ukrainian sale . But If Ukraine doesn't pay for their fuel , I see no reason anybody would want the sale .
Stupid Europe blocked the construction of south stream pipe line (gas supply for Europe avoiding Ukraine).It could resolve a lot of problems for the nearest future. But Europe prefer to suffer from problems caused by Ukraine .It is really something sado -maso…It also show the total incompetence of the european commissar in charge of the file.
That pipeline is nowhere near finished, so it has no effect on the current situation. The dispute concerns EU public procurement rules, i.e the award of public works contracts after a fair bidding process and concerns alleged corruption in Bulgaria, not the pipeline as such.
Brinkmanship.
What does the Ukraine think? That it can get gas from Russia for free? That it doesn't have to pay for it? What a deadbeat country!