Monday, June 16, 2014

Russia’s Gazprom cuts gas to Ukraine in a new phase of their conflict

By Michael Birnbaum, WashPost
June 16 at 3:44 AM

MOSCOW – Russia said it would cut off gas supplies to Ukraine on Monday, setting the stage for a new phase of the months-long conflict between the two nations.

The move came after the two sides failed to agree on a price for natural gas, a vital ingredient in Ukraine's energy-intensive manufacturing economy. Ukraine is also a vital link between the rest of Europe and Russia's gas supplies, transporting 15 percent of Europe's gas supplies through its pipelines.

Russia's state-controlled natural gas company Gazprom announced Monday that it had imposed a new requirement on Ukraine to pay for all natural gas in advance. Gazprom officials have said that the debt from Ukraine's state gas company, Naftogaz Ukraine, has piled up to $4.5 billion. Since Ukraine has not paid, Gazprom said Monday, that means Russia will cut the flow of natural gas to Ukraine.

(More here.)

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