Russia has totally cut off all gas supplies to Ukraine in an escalation of the dispute between the countries. Gazprom, the Russian supplier of Ukrainian gas is said to be owed a total of $4.5bn, and it wants a payment of $1.95bn today. If the payment had been made by 0600 this morning GMT, Gas would have continued to flow from Russia.

Talking to the BBC Ukrainian Energy Minister Yuri Prodan said.

“Gas supplies to Ukraine have been reduced to zero,”

Gazprom had previously issued several warning and has now moved to pre-payment from the Ukrainian company Naftogas that is the middleman for all supplies piped into the Ukraine.

“Today, from 10:00 Moscow time, Gazprom, according to the existing contract, moved Naftogaz to prepayment for gas supplies,” Gazprom said in a statement on Monday morning.

“From today, the Ukrainian company will receive Russian natural gas only in the amounts it has paid for.”

“We reached no agreement. The chances that we meet again are slim,” Gazprom spokesman Sergei Kuprianov said after the latest round of the talks ended in Kiev over the weekend.

Gazprom have assured European leaders that it will continue to supply gas to other countries but that it is Ukraines responsibility to allow gas movement to Europe via the pipeline that runs across the country.

European leaders are concerned that should the situation not be resolved before winter that Ukraine will use the gas destines for Europe rather than supply Europe with their quota. Some 15% of Europes total supply flows through pipelines in Ukraine.
Source

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