No Deal: Gazprom Refuses to Supply Gas Until Ukraine Actually Pays For It

© AP Photo / Sergei ChuzavkovUkrainian worker operates a valve at a gas storage point in Bil 'che-Volicko-Ugerske underground gas storage facilities in Strij, outside Lviv, Ukraine
Ukrainian worker operates a valve at a gas storage point in Bil 'che-Volicko-Ugerske underground gas storage facilities in Strij, outside Lviv, Ukraine - Sputnik International
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Gazprom CEO Alexei Miller said Tuesday that Ukraine’s request for 114 million cubic meters of gas to be delivered in two days would lead to full shutdown of fuel deliveries if the payment is not received

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MOSCOW (Sputnik) – Ukraine's tardiness in making its prepayment for Russian gas deliveries could lead to a full shutdown within two days and threaten the transit delivery of fuel to European consumers, Gazprom CEO Alexei Miller said Tuesday.

"Ukraine has not made its gas prepayment on time. As of today, there is only 219 million cubic meters of gas paid for. It takes about two days for [Ukraine's] Naftogaz to transfer funds to [Russia's] Gazprom," Miller said.

Miller said that Ukraine's request for 114 million cubic meters of gas to be delivered in two days would lead to a full shutdown of fuel deliveries if payment is not received."Therefore, the delivery of gas to Ukraine in the volume of 114 million cubic meters of gas in the next two days already would bring the delivery of Russian gas to Ukraine to a full stop, which will create serious risks for transit gas to Europe," Miller added.

On Monday, Ukraine's state energy company Naftogaz accused Gazprom of failing to deliver the gas for which Kiev has paid in advance. According to a statement by the company's press service, Gazprom has supplied only 47 million cubic meters of the requested 114 million cubic meters of gas.

The issue of gas supplies is among the most acute in Russian-Ukrainian relations. In the summer of 2014, Russia's Gazprom has cut off gas deliveries to Ukraine due to Kiev's massive debt that at the time surpassed $5 billion. Gas deliveries resumed in December, after months of negotiations mediated by the European Union.

The so-called winter package stipulated that Ukraine repay $3.1 billion of its gas debt before the end of 2014 and pay in advance for future gas supplies. It also included a temporary discount of $100 per 1,000 cubic meters, granted by Russia to Ukraine, that expires on April 1, 2015.

 

 

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