Ukraine bans Russia’s airlines from crossing its airspace

Chairman Alexei Miller said Ukraine’s Naftogaz had failed to make the payment and delivery was halted as a result, local media is reporting.

Moscow has banned the import of most Western food products to counteract financial and other sanctions imposed by Brussels and Washington in the wake of Russia’s annexation of Ukraine’s Black Sea peninsula of Crimea a year ago.

In accordance with current agreements with Gazprom, the company plans to continue to buy Russian gas in compliance with the contract, when it is needed, depending on the level of consumption in Ukraine, taking into account the supply on the European market.

Ukrainian prime minister Arseny Yatsenyuk also announced that his government has made a decision to close the country’s airspace to all Russian planes as “an issue of the national security as well as a response to Russia’s aggressive actions”.

He warned that Ukraine’s failure to buy more gas would create risks for onward shipment to the rest of Europe. “They did not cut off gas supplies to us, we are the ones who are not buying it. And this was done in connection with the fact that pricing offers from our European partners are much better than those from our northern neighbor”, Yatseniuk said during a Cabinet of Ministers meeting on Wednesday.

“Naftogaz of Ukraine expects to receive today the entire volume of Russian gas that was previously prepaid”. Europe relies on Russian Federation for about a third of its gas, nearly half of which is piped via Ukraine. One stand-off in 2009 caused serious disruptions in shipments to European Union countries in the dead of winter.

Ukrainian state gas company Naftogaz said in Kiev it had enough stock, and that supplies of Russian gas were not necessary for the time being.

Ukraine on Wednesday banned all Russian airlines from crossing its airspace, the latest escalation between the two neighbours 19 months into a separatist war in the east of the former Soviet state.

The gas stoppage comes less than two months after the two countries signed an EU-brokered deal ensuring supplies through the winter.

Ukraine has imported 400 mcm of Russian gas so far this month, including 10 mcm on Tuesday, Ukrtransgaz data showed.