The Russian government has announced that natural gas giant Gazprom will begin insisting on advance payment for any deliveries of natural gas to neighboring Ukraine starting in June.
The move aims to assure that Gazprom is paid promptly, or indeed at all, after years of Ukraine’s government constantly behind on payments. Compounding the problem, after Gazprom ended the substantial discount they had been giving them, Ukraine’s interim government insisted they won’t pay at all anymore.
The bill has ballooned with the non-payment, and is several billion dollars, or tens of billions if the fines and late fees end up factored in. Russia said Gazprom made the decision after Ukraine offered “no specific proposals” on getting caught up on their bills.
Ukraine Interim Premier Arseniy Yatsenyuk has said his nation would be open to making payments on its bill, but only if Russia agreed to knock the price down to the previous discount, which seems unrealistic given the rising prices of natural gas across Europe and Asia.
Gazprom belongs to russian state by 50% +1 action. It is a business company. People like Mr.Yatseniuk were aware about the terms of the gaz contract between Russia and Ukraine when signed (as far as I can remember in 1999).All nuances about reduction of price are known.Why he suddently discover now that he has to pay some supplement and why the Ukrainian governement simply refuse to pay the
gaz ?
So much for the idea that Russia, unlike that dastardly old EU, was willing to offer Ukraine some sweet economic deal. Russia itself is just too poor to give away oil and gas at less than market prices. And just wait until Sochi debt hits next year!
hahaha dumb Ukie deadbeats need to kiss Russia's ass, not the EU! Let's see how much you hate Russia and love NATO when you are freezing your asses off this winter.
Even if none of the recent events had ever occurred, it is not an unreasonable act on Russia's part. What does Ukraine think. That it can get gas from Russia for free and never have to pay for it?
The Russians should tell Yats that once they've paid the outstanding debt then they can discuss some sort of discount, perhaps. If I was behind with my gas provider, there is no way they are going to allow me to basically get the gas on credit, especially if I was a known risk for not paying. Purely a business decision.