Gazprom switches Kiev off gas, gas flows to EU

KIEV/MOSCOW, June 16 (Itar-Tass) -- Russian gas giant Gazprom stopped gas pumping to Ukraine because Kiev did not pay for supplies in June before the deadline, although European supplies is still flowing, Gazprom representative Sergei Kupriyanov told channel Rossiya 24 in an interview Monday. “The volumes of gas meant to be sent to Europe will arrive in full correspondence with the contracts,” Kupriyanov said. “Naftogaz Ukrainy must ensure uninterrupted supplies until the handover place.” Russia has set a 10.00 Moscow time deadline for the repayment of a debt of $1.951 billion and switched Kiev to a prepayment system on Monday after postponing it three times. Although Ukraine no longer buys gas from Moscow, its debt will grow month after month because the contract between Gazprom and Kiev contains a take-or-pay condition, Kupriyanov said. The June 11 trilateral talks between Russia, Ukraine and the E.U. on the price of gas ended with no result as were bilateral talks between Gazprom and Ukraine’s energy company Naftogaz Ukrainy on June 15. Gazprom CEO Alexei Miller said that Naftogaz must pay $1.454 billion for November-December and demonstrate some progress on paying an April-May debt. He said that during the trilateral talks the debt increased by $2 billion with the unpaid supplies amounting to 11.150 billion cubic meters. During the last trilateral talks Gazprom agreed to recalculate the April-May debt on the basis of a $384.86 price, but Kiev wants the price to be $326 against $268 it demanded earlier before it starts repaying the debt. Miller said that the $385 price corresponds to the International Monetary Fund recommendations given to Ukraine and that E.U. Energy Commissioner Gunther Oettinger supports the figure. The European Commission also backs Russia’s approach that paying the debt is necessary. Learn more on itar-tass.com