Russia’s gas giant Gazprom says Ukraine will now only receive the gas supplies it has paid for in advance. The decision comes after a deadline for Kyiv to pay nearly 2 billion dollars of debts, or have its supply cut off, passed.
A spokesperson for Gazprom said Ukraine’s state-controlled Naftogaz had also failed to pay for June deliveries and that from now on it must pay ‘up front’ for supplies.
Moscow says it will continue to supply contracted volumes of gas to European countries and that Naftogas was required to ensure their delivery.
The tariff for gas was increased by Russia after the ousting of Ukrainian president Viktor Yanukovych. Kyiv wants to pay the previously agreed amount.
Last ditch talks between the two countries failed to resolve the dispute and a compromise proposal put forward by the EU was rejected by Moscow.