Russia Stops Gas Supplies To Ukraine

Russia briefly cut gas supplies to Ukraine in July and in June 2014 as Russian-backed separatists and Ukrainian forces clashed in southeastern Ukraine after the ouster of President Viktor Yanukovych.

Russian state giant Gazprom on Wednesday said it had halted gas deliveries to Ukraine after Kyiv failed to make upfront payments for more supplies.

“Russian airlines and Russian aircraft are not entitled to use Ukrainian airspace anymore”, announced Yatsenyuk during a cabinet meeting on Wednesday.

VedomostiOn Monday, Ukrainian gas operator Naftogaz’s Chief Executive Andrei Kobolev announced that Ukraine could buy all the gas needed for the upcoming winter from Europe.

As Russia steps up its air campaign in support of President Bashar al-Assad in Syria, a shaky truce in eastern Ukraine is also being increasingly put to the test. “Until this time, Naftogaz will accept Russian gas only for transportation to Europe”, the statement said.

A group of European companies in September signed an agreement with Russia’s state-controlled Gazprom to expand its Nord Stream pipeline to Germany, bypassing Ukraine.

Accusing Russian airlines of systematically violating flight rules, the ministry said the restrictions are aimed at “preventing any possible provocations” in the airspace of Ukraine.

“Thus, the supplies have been stopped until the new payments are received”, Gazprom CEO Alexei Miller said Wednesday, the Interfax news agency reported.

Russia’s relationships with the European Union and Ukraine have been volatile since the annexation of Crimea in March past year.

Power lines supplying the region from Ukraine were blown up over the weekend and people are having to rely on handouts. Ukraine’s lower gas usage means it doesn’t need more Russian gas this year, according to Energy Minister Volodymyr Demchyshyn on Monday. Under the deal, Russian Federation lowered the price it charged Ukraine to the same level granted to neighboring countries, from US$251 per 1,000 cubic meters to about US$230.