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Russia warns of gas supply cuts if Ukraine does not pay bills

World News

10-04-2014 | 09:17

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Russia warns of gas supply cuts if Ukraine does not pay bills

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President Vladimir Putin said on Thursday Russia could cut natural gas supplies to Ukraine if it fails to pay its gas bills on time and warned there could be a reduction in onward deliveries to Europe.

Calling for urgent consultations with Europe on stabilising Ukraine's economy in a letter to European leaders, seen by Reuters, Putin also said 11.5 billion cubic metres of gas, worth $5.5 billion, needed to be pumped into Ukrainian gas storages to guarantee uninterrupted transit.

This comes after President Vladimir Putin has informed several European leaders about the "critical situation" over Ukraine's natural gas debt and about a possible impact on the transit of gas to Europe, Russian news agencies said.

Putin expressed "extreme concern about the situation surrounding Ukraine's gas debts and ... supplies of gas to the European Union," state-run RIA cited Putin's spokesman, Dmitry Peskov, as saying.

He also told European leaders there can be no delay in solving the problem of Ukraine's debt for Russian natural gas, Peskov added.

Putin proposed mechanisms for "urgent discussions" on the situation surrounding Ukraine's debt to Russia for gas in a message to European leaders, his spokesman said.

"The situation is urgent," Peskov concluded by saying.

State-controlled gas producer Gazprom stopped pumping gas to Ukraine during price disputes in the winters of 2005-2006 and 2008-2009, leading to reduced supplies in European countries that receive Russian gas via pipelines that cross Ukraine.

Gazprom says Ukraine owes $2.2 billion for gas supplies and missed the deadline for paying for its March supplies.

LBCI/REUTERS

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