Russia’s Gazprom cuts gas supply to Ukraine as talks fail
June 16, 2014
Political tensions between Russia and Ukraine intensified on Monday when Russian energy giant Gazprom halted natural gas supplies to Ukraine after talks to settle a payment dispute failed. “Gas supplies to Ukraine have been reduce to zero,” Ukrainian energy minister Yuri Prodan said, according to a BBC report.
Mr. Prodan’s announcement came shortly after Gazprom said it would only deliver gas to Ukraine that is paid for up front. For months, Gazprom and Ukraine have been locked in contract dispute over gas arrears payments. Gazprom puts Ukraine’s unpaid gas bill at $4-billion (U.S.) and demanded that almost half of it be paid by today’s deadline or face supply disruptions.