• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 3 hours IMO 2020 could create fierce competition for scarce water resources
  • 1 hour Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 17 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 13 hours IMO2020 To scrub or not to scrub
  • 16 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 3 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 10 hours Theresa May to Step Down
  • 2 hours Total nonsense in climate debate
  • 13 hours Devastating Sanctions: Iran and Venezuela hurting
  • 5 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 227 days Epic Fail as Solar Crashes and Wind Refuses to Blow
  • 15 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 11 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry

Gazprom Threatens To Cut Off Gas To Ukraine

Russian natural-gas giant Gazprom is threatening to cut off supplies to Ukraine entirely as early as February 26, a move the Russian company says could result in a suspension of supplies to Europe.

Gazprom chief Aleksei Miller said in a February 24 statement that "Ukraine has not made a new prepayment for gas on time."

Miller added if no new prepayments are made, once the 114 million cubic meters (mcm) of prepaid gas is delivered to Ukraine there will be a "complete cessation of Russian gas supplies to Ukraine...which creates serious risks for gas transit to Europe."

Miller's statement comes as Ukraine's state energy firm Naftogaz has accused Gazprom of failing to deliver all of the gas Ukraine has paid for.

Related: Is The EU Finally Breaking Free Of Russia’s Energy Grip?

Naftogaz said on February 23 that it had paid in advance for 114 mcm of gas but had received only some 47 mcm.

The Ukrainian company said it had sent a notice of breach of contract to the Ukrainian government and the European Commission and had demanded an explanation from Gazprom.

The European Commission helped broker a deal last October between Moscow and Kyiv that was meant to ensure Ukraine received gas during the winter and that supplies of Russian gas to Europe through Ukraine were not disrupted.

Under that agreement, Ukraine promised to pay off arrears for gas received and to prepay for future gas shipments, while Gazprom agreed to lower the price.

Related: As IMF Extends $17.5 Billion Credit To Kiev, Gazprom Demands Debt Repayment

That deal is valid until the end of March.

Gazprom said it is supplying gas to the parts of the Donetsk and Luhansk regions in eastern Ukraine that are controlled by pro-Russian separatists -- since Kyiv stopped supplying them.

Gazprom said it considers those two regions as being part of the contract with Naftogaz for supplies to Ukraine though the Russian company conceded that Naftogaz "does not take these volumes into account, as a result...estimates of how much prepaid gas has been supplied differ."

By RFERL.org 

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News