Gazprom CEO: "We'll only be supplying the exact amount of gas requested by our European partners to the Russia-Ukraine border."
Ukraine says Russia has cut off all gas supplies to Kiev, in a major escalation of a dispute between the two nations.
"Gas supplies to Ukraine have been reduced to zero," Ukrainian Energy Minister Yuri Prodan said.
Russia's state-owned gas giant Gazprom said Ukraine had to pay upfront for its gas supplies, after Kiev failed to settle its huge debt.
Gazprom had asked Kiev to pay $1.95bn (£1.15bn) of the $4.5bn it said it was owed by 06:00 GMT.
The company said it would continue to supply gas to Europe, although Gazprom chief Alexei Miller warned there now were "significant" risks for gas transit to the EU via Ukraine.
Ukraine has enough reserves to last until December, according to state gas company Naftogaz.
Russia-Ukraine ties remain tense since Moscow annexed Crimea in February.
Kiev says Moscow backs separatists in the east of the country. Russia denies the charge.
EU Energy Commissioner Guenther Oettinger: "They insisted [on getting] the $1.9bn (£1.15bn) immediately"
In other developments:
- Ukrainian President Petro Poroshenko says he hopes to announce a detailed peace plan later this week, including a ceasefire with separatist rebels
- Pro-Russian gunmen have seized the regional treasury in the eastern city of Donetsk, potentially disrupting payments of pensions and other social benefits
- Ukraine's National Bank building in the city has been captured by separatists, reports say
On Monday morning, Gazprom said in a statement: "Today, from 10:00 Moscow time, Gazprom, according to the existing contract, moved Naftogaz to prepayment for gas supplies.
"From today, the Ukrainian company will receive Russian natural gas only in the amounts it has paid for."
Ukraine's energy minister Yuri Prodan had hoped to secure a new discounted gas rate from Gazprom
Moments later, both Gazprom and Naftogaz filed lawsuits against each other in the Stockholm international commercial arbitration court.
Gazprom said it wanted to recover $4.5bn from Naftogaz. Meanwhile, Naftogaz said it was seeking to recover $6bn in "overpayment" for gas since 2010.
Russian Prime Minister Dmitry Medvedev said Ukraine's position "smacks of blackmail".
Ukrainian Prime Minister Arseniy Yatseniuk accused Moscow of blocking the deal to cause supply problems in Ukraine in the winter.
"It is not about gas. It is a general Russian plan to destroy Ukraine," he said.
The latest moves follow crisis talks between Ukraine, Russia and the EU on the issue.
"We reached no agreement. The chances that we meet again are slim," Gazprom spokesman Sergei Kuprianov said after the talks ended in Kiev over the weekend.
However, EU Energy Commissioner Guenther Oettinger said he was "not pessimistic" about a deal.
He said he would continue to work for an agreement despite his compromise proposal, that Kiev pay $1bn on Monday and the rest in instalments, being rejected by Gazprom.
On Monday, Gazprom stressed it would continue to supply Europe with gas at "full volume". However, correspondents say the EU could be affected.
About 15% of the EU's gas supply is Russian gas piped through Ukraine.
Embassy protests
Ukraine's discounted rate for gas - negotiated with former President Viktor Yanukovych - was axed in April after Moscow accused Kiev of failing to pay its bills.
Earlier this month, Gazprom gave Ukraine more time to settle its gas bill after receiving a part-payment of $786m.
Ukraine said it refused to clear its debts completely in protest at Gazprom's recent 80% price increase.
Tensions were worsened by a violent protest outside the Russian embassy in Kiev at the weekend
Ukraine's gas bill was $268 per 1,000 cubic metres until April. The price is now $485.50.
Kiev had earlier said it was ready to make the $1.95bn payment if Russia cut its price to $326.
But Moscow said $385 was the final offer.
Addressing security chiefs, Mr Poroshenko said he had set government forces the task of regaining full control of Ukraine's border with Russia this week.
He said that once the frontier was secure, a ceasefire could be declared and efforts made to agree a detailed peace plan.
"Declaring a ceasefire while the border is open would be irresponsible," he added.
Are you in Kiev or elsewhere in Ukraine? Are you concerned about the current situation there? Send us your comments viahaveyoursay@bbc.co.uk Use the word ''Kiev'' as a heading to your comment.
No comments:
Post a Comment