Russia’s Gazprom Halts Ukraine Gas Supplies

Gazprom said that by 7am GMT on Wednesday Ukraine had received all the gas it had paid for and would not be sent more because the country had yet to pay in advance for future supplies.

Last month, the two countries banned landings by each other’s airlines.

Russia’s plans to extend its gas link to Germany run counter to EU interests and risk further destabilizing Ukraine, 10 European governments said in a letter to the European Commission that called for a summit-level debate on the issue.

We will continue to monitor the situation and provide more updates on the story as and when new information becomes available.

Speaking on the eve of talks between the French and Russian presidents, French Prime Minster Manuel Valls gave his clearest indication yet the punishing travel and financial restrictions placed on Russia over its role in eastern Ukraine could end.

Reports in Russian paper the Kommersant suggest that the Kremlin could block the supply of natural gas and bituminous coal for power generation to Ukraine should power not be restored soon.

The Ukrainian government has banned all Russian planes from using its airspace.

Following a blackout in Crimea prompted by an explosion that downed several electricity pylons on Ukrainian territory, the two countries have traded punitive measures with little restraint.

“Supplies are being stopped until new payments arrive from the Ukrainian company”, said Alexei Miller, the Gazprom chief. The European Commission said transit isn’t a concern at the moment, while Ukraine said it will keep shipping fuel to Europe strictly in line with the transit contract.

Russia’s energy minister Alexander Novak said Kiev’s failure to restore power to Crimea, which Moscow annexed a year ago, raised the possibility that coal supplies to Ukraine may be stopped, potentially starving its power stations of fuel.

Russian gas giant Gazprom has ceased gas supplies to Ukraine, citing that Kiev had failed to make the required upfront payments on time. Ukraine’s lower gas usage means it doesn’t need more Russian gas this year, according to Energy Minister Volodymyr Demchyshyn on Monday.