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Ukraine crisis: Russia halts gas supplies to Kiev | Ukraine crisis: Russia halts gas supplies to Kiev |
(35 minutes later) | |
Ukraine says Russia has cut off all gas supplies to Kiev, in a major escalation of a dispute between the two nations. | Ukraine says Russia has cut off all gas supplies to Kiev, in a major escalation of a dispute between the two nations. |
"Gas supplies to Ukraine have been reduced to zero," Ukrainian Energy Minister Yuri Prodan said. | "Gas supplies to Ukraine have been reduced to zero," Ukrainian Energy Minister Yuri Prodan said. |
Russia's state-owned gas giant Gazprom said Ukraine had to pay upfront for its gas supplies, after Kiev failed to settle its huge debt. | Russia's state-owned gas giant Gazprom said Ukraine had to pay upfront for its gas supplies, after Kiev failed to settle its huge debt. |
Gazprom had sought from Kiev $1.95bn (£1.15bn) - out of $4.5bn it says it is owed - by 06:00 GMT. | Gazprom had sought from Kiev $1.95bn (£1.15bn) - out of $4.5bn it says it is owed - by 06:00 GMT. |
The company said it would continue to supply gas to Europe, although Gazprom chief Alexei Miller warned there now were "significant" risks for gas transit to the EU via Ukraine. | The company said it would continue to supply gas to Europe, although Gazprom chief Alexei Miller warned there now were "significant" risks for gas transit to the EU via Ukraine. |
Ukraine has enough reserves to last until December, according to state gas company Naftogaz. | |
Russia-Ukraine ties remain tense since Moscow annexed Crimea in February. | Russia-Ukraine ties remain tense since Moscow annexed Crimea in February. |
Kiev says Moscow backs separatists in the east of the country. Russia denies the charge. | Kiev says Moscow backs separatists in the east of the country. Russia denies the charge. |
In other developments: | In other developments: |
'Blackmail' | 'Blackmail' |
On Monday morning, Gazprom said in a statement: "Today, from 10:00 Moscow time, Gazprom, according to the existing contract, moved Naftogaz to prepayment for gas supplies. | On Monday morning, Gazprom said in a statement: "Today, from 10:00 Moscow time, Gazprom, according to the existing contract, moved Naftogaz to prepayment for gas supplies. |
"From today, the Ukrainian company will receive Russian natural gas only in the amounts it has paid for." | "From today, the Ukrainian company will receive Russian natural gas only in the amounts it has paid for." |
Moments later, both Gazprom and Naftogaz filed lawsuits against each other in the Stockholm international commercial arbitration court. | |
Gazprom said it wanted to recover $4.5bn from Naftogaz. Meanwhile, Naftogaz said it was seeking to recover $6bn in "overpayment" for gas since 2010. | |
Russian Prime Minister Dmitry Medvedev said Ukraine's position on the issue "smacks of blackmail". | Russian Prime Minister Dmitry Medvedev said Ukraine's position on the issue "smacks of blackmail". |
Ukrainian Prime Minister Arseniy Yatseniuk accused Moscow of blocking the deal to cause supply problems in Ukraine in the winter. | |
"It is not about gas. It is a general Russian plan to destroy Ukraine. It is yet another step against the Ukrainian state and against Ukrainian independence." | "It is not about gas. It is a general Russian plan to destroy Ukraine. It is yet another step against the Ukrainian state and against Ukrainian independence." |
The latest moves follow crisis talks between Ukraine, Russia and the EU on the issue. | The latest moves follow crisis talks between Ukraine, Russia and the EU on the issue. |
"We reached no agreement. The chances that we meet again are slim," Gazprom spokesman Sergei Kuprianov said after the talks ended in Kiev over the weekend. | "We reached no agreement. The chances that we meet again are slim," Gazprom spokesman Sergei Kuprianov said after the talks ended in Kiev over the weekend. |
However, EU Energy Commissioner Guenther Oettinger said he was "not pessimistic" about a deal. | However, EU Energy Commissioner Guenther Oettinger said he was "not pessimistic" about a deal. |
He said he would continue to work for an agreement despite his compromise proposal, that Kiev pay $1bn on Monday and the rest in instalments, being rejected by Gazprom. | He said he would continue to work for an agreement despite his compromise proposal, that Kiev pay $1bn on Monday and the rest in instalments, being rejected by Gazprom. |
Mr Oettinger added that Ukraine intended to fill its gas transit commitments to the EU and he was also confident that Russia would meet its gas supply pledges to Europe. | Mr Oettinger added that Ukraine intended to fill its gas transit commitments to the EU and he was also confident that Russia would meet its gas supply pledges to Europe. |
On Monday, Gazprom stressed it would continue to supply Europe with gas at "full volume" and that it was Ukraine's responsibility to ensure the transit. | On Monday, Gazprom stressed it would continue to supply Europe with gas at "full volume" and that it was Ukraine's responsibility to ensure the transit. |
However, correspondents say the EU could be affected. | However, correspondents say the EU could be affected. |
About 15% of the EU's gas supply is Russian gas piped through Ukraine. | About 15% of the EU's gas supply is Russian gas piped through Ukraine. |
Embassy protests | Embassy protests |
Ukraine's discounted rate for gas - negotiated with former President Viktor Yanukovych - was axed in April after Moscow accused Kiev of failing to pay its bills. | Ukraine's discounted rate for gas - negotiated with former President Viktor Yanukovych - was axed in April after Moscow accused Kiev of failing to pay its bills. |
Earlier this month, Gazprom gave Ukraine more time to settle its gas bill after receiving a part-payment of $786m. | Earlier this month, Gazprom gave Ukraine more time to settle its gas bill after receiving a part-payment of $786m. |
Ukraine said it refused to clear its debts completely in protest at Gazprom's recent 80% price increase. | Ukraine said it refused to clear its debts completely in protest at Gazprom's recent 80% price increase. |
Ukraine's gas bill was $268 per 1,000 cubic metres until April. The price is now $485.50. | Ukraine's gas bill was $268 per 1,000 cubic metres until April. The price is now $485.50. |
Kiev had earlier said it was ready to make the $1.95bn payment if Russia cut its price to $326. | Kiev had earlier said it was ready to make the $1.95bn payment if Russia cut its price to $326. |
But Moscow said $385 was the final offer. | But Moscow said $385 was the final offer. |
Are you in Kiev or elsewhere in Ukraine? Are you concerned about the current situation there? Send us your comments via haveyoursay@bbc.co.uk Use the word ''Kiev'' as a heading to your comment. | Are you in Kiev or elsewhere in Ukraine? Are you concerned about the current situation there? Send us your comments via haveyoursay@bbc.co.uk Use the word ''Kiev'' as a heading to your comment. |