Russia Launches Ultimatum

Russia has decided that Ukraine would have to pay for June supplies before June 2nd, with an immediate stop to the gas supplies to Kiev should prepayment not be made.

“Once again, of course, one should be aware that this is not about halting the supplies, it is about supplying Ukraine with gas in strict compliance with the prepayments, i.e. how much gas Ukraine will buy for June,” Alexey Miller, Chairman of the Gazprom Management Committee, told Dmitry Medvedev, Russian Prime Minister.

According to the transcript of the conversation, Medvedev suggested that there is room for negotiation in case Ukraine paid at least a part of its debt. 

“Still, they have an opportunity to settle their debts before the end of May, and pay the required amount of money or at least a part of it and start negotiating this matter with Gazprom, that is, express their wish to pay off their debts. Today, we do not see this willingness on the part of Ukrainians,” Medvedev concluded. 

Gazprom stated that Ukraine’s total debt for Russian gas totalled $3.508 billion, with no payments received by the Russian giant after February. According to Miller, Ukraine hasn’t paid for 9 billion 420 million cubic meters of gas, including last year’s debt. 

In the while, according to Oil and Gas Information Agency, the Russian government is ready to start an auction on gas deposits in the Yamalo-Nenetsky.