News / Economy

Ukraine Halts Russian Gas Imports, Sources Say

FILE - Pipes are seen at a gas compressor station in the village of Boyarka, outside Kiev, Ukraine.
FILE - Pipes are seen at a gas compressor station in the village of Boyarka, outside Kiev, Ukraine.
Ukraine halted Russian gas imports last Friday in a dispute over pricing, sources in Russia's gas industry and state export monopoly Gazprom told Reuters on Monday, though the flow to Europe via Ukraine is unaffected so far.

The gas imports to Ukraine stopped weeks before Kiev is due to sign a free-trade agreement with the European Union - a move that has angered Moscow.

“There have been no supplies to Naftogaz since Friday,” an industry source said, referring to the Ukrainian state energy company that buys Russian gas.

A source in Ukraine's gas industry also said the gas pipeline operator Ukrtransgaz had ordered Naftogaz to stop purchases of Russian gas on Friday.

Russia supplies about half of its gas to Europe through Ukraine.

An official at Gazprom, however, said transit flows of Russian gas to European clients via Ukraine were continuing unaffected. “All requests for exports are being fulfilled,” he said.

Both Gazprom and Naftogaz declined to comment on the halt of Russian gas flows to Ukraine.

Unaffordable price

Ukraine, which pays around $400 per 1,000 cubic meters of Russian gas, one of the highest prices in Europe, has asked Moscow to ease terms that it considers to be excessive and unaffordable for its debt-strapped economy.

Kiev has been steadily reducing Russian gas intake.

Last month, Gazprom raised the stakes in the stand-off, saying Ukraine had failed to pay for August deliveries in full.

The dispute has raised concerns of a new “gas war” over prices between the neighbors, similar to those in the winters of 2006 and 2009 which caused supplies to be disrupted to Ukraine and the rest of Europe.

Kiev has been trying to reduce its dependence on energy supplies from Russia by fostering closer relation with Europe.

The agreements with the European Union on association and free trade, expected to be signed at a summit on Nov. 28, offer the former Soviet republic of 46 million people the chance of a historic shift west away from Russia.

Kremlin spokesman Dmitry Peskov told reporters on Monday that Russian President Vladimir Putin and his Ukrainian counterpart Viktor Yanukovich had met in Moscow at the weekend.

“They held talks, comprehensively discussed trade and economic relations of Ukraine and Russia,” said Peskov, without elaborating.

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