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Ukraine misses gas payment deadline, risks halt on supplies - Gazprom

Published time: March 07, 2014 14:24
Edited time: March 08, 2014 14:24

AFP Photo/Viktor Drachev

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Ukraine has missed its payment deadline for gas supplies. As its debt is increasing, Gazprom does not rule out it may cut gas supplies to the country, the Russian energy giant’s head Aleksey Miller has said.

“Today, March 7, is the deadline for making a payment for the February gas supplies to Ukraine,” Miller told journalists on Friday, adding that Gazprom has not received payment on account.

“Given the discount for the first quarter the outstanding debt has increased to $1.89 billion,” Miller added.

“Factually it means that Ukraine has stopped paying for gas. This contravenes the contract terms and international trade practice. But we can’t deliver gas for free”.

If Ukraine doesn’t pay its bills it risks plunging into a crisis similar to the one in 2009, Miller warned.

During the transit crisis five years ago supplies of Russian gas to Europe were cut off for 20 days because of the tension between Russia and Ukraine.

Earlier this week President Putin said that starting from April 1 Gazprom would no longer offer Ukraine the lower price agreed in December. The aid package to Kiev included $15 billion in bonds purchases and a 33 percent gas discount, that reduced the price to $268.50 per 1,000 cubic meters down from $400.

Currently Ukraine buys more than 50 percent of its gas from Russia, but aims to become energy independent by 2020. Before the protest kicked off in Ukraine, the country signed a $10 billion shale gas exploration deal with Chevron.

Comments (68)

 

Ivo Petrović 15.04.2014 15:55

This is amazing - Ukraine just miss the deadline after outsting the Moscow puppet - Yanukovich.

 

Loki 20.03.2014 14:00

everything you buy nowadays... says "Made in China"

 

Podwodnaja 11.03.2014 12:24

Why doesn't anybody ask the right question? How could it be that Ukraine is in such debt over gas? It doesn't matter where the gas comes from, the problem is the people who control the gas! The people of Ukraine (all of them ukr/rus) need to wake up and get the focus off of Russia/EU/USA and put it on itself and its own problems! You need a government with all parties present! Rewrite laws which will target corruption. If you join the EU, you will only regret this, prices will go up and up. No national products will be used, everything will be imported! Take no money from EU nor IMF, your pensions will be horrible!

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