Connect with us

Hi, what are you looking for?

World

Russia’s Gazprom seeks $11 bn in ‘debt’ from Ukraine

-

Chairman of Russia's Gazprom Alexei Miller on Saturday said that Ukraine must pay back the full discount it has been granted on Russian gas over the past four years, worth $11.4 billion.

Miller said this week's annulment of the so-called Kharkiv accords, which gave Ukraine cut-price Russian gas until 2017 in exchange for access to the Crimea's port facilities, means that Kiev should pay the sum total of this discount back.

"The sum of the discount granted in the time that the Kharkiv accords were valid was $11.4 billion (8.32 billion euros). That is the sum that the Russian government, the Russian budget did not receive," Miller told Russian television.

Russia's President Vladimir Putin (right) listens to Gazprom CEO Alexei Miller at a ceremony ou...
Russia's President Vladimir Putin (right) listens to Gazprom CEO Alexei Miller at a ceremony outside the Black Sea resort town of Anapa on December 7, 2012 to launch the construction of the South Stream gas pipeline
Sergei Karpukhin, POOL/AFP

The discount was a de-facto advance payment by Moscow for the future lease on Black Sea Fleet's facilities in the Crimean port of Sevastopol -- annexed by Russia with the rest of the peninsula -- and so must be paid back, he added.

"Russia was paying for the Black Sea Fleet in Ukraine... towards prolonging the agreement. That is, Russia was paying an advance. Therefore, the $11.4 billion is a debt that Ukraine has accrued to Russia," he said.

Tensions between Moscow and Kiev have been running high since Russia annexed Crimea last month in defiance of the international community after pro-European demonstrators ousted Ukraine's pro-Kremlin leaders.

A Greenpeace activist stands on September 26  2013 on the roof of a Gazprom gasoline station in the ...
A Greenpeace activist stands on September 26, 2013 on the roof of a Gazprom gasoline station in the Bulgarian city of Blagoevgrad during a protest against drilling in the Arctic
Nikolay Doychinov, AFP

Cutting discounts which had been in place, Russia hiked its gas price for Ukraine by 80 percent last week to $485.50 per 1,000 cubic metres, reflecting its deep displeasure with the ex-Soviet nation's new westward course.

Gazprom is also seeking immediate payment for all recent gas deliveries to Ukraine, valued at over $2.2 billion.

Moscow has repeatedly shown readiness to use gas as a lever in conflicts with Ukraine, which remains dependent on imports from its resource-rich former Soviet master to keep the country running.

Chairman of Russia’s Gazprom Alexei Miller on Saturday said that Ukraine must pay back the full discount it has been granted on Russian gas over the past four years, worth $11.4 billion.

Miller said this week’s annulment of the so-called Kharkiv accords, which gave Ukraine cut-price Russian gas until 2017 in exchange for access to the Crimea’s port facilities, means that Kiev should pay the sum total of this discount back.

“The sum of the discount granted in the time that the Kharkiv accords were valid was $11.4 billion (8.32 billion euros). That is the sum that the Russian government, the Russian budget did not receive,” Miller told Russian television.

Russia's President Vladimir Putin (right) listens to Gazprom CEO Alexei Miller at a ceremony ou...

Russia's President Vladimir Putin (right) listens to Gazprom CEO Alexei Miller at a ceremony outside the Black Sea resort town of Anapa on December 7, 2012 to launch the construction of the South Stream gas pipeline
Sergei Karpukhin, POOL/AFP

The discount was a de-facto advance payment by Moscow for the future lease on Black Sea Fleet’s facilities in the Crimean port of Sevastopol — annexed by Russia with the rest of the peninsula — and so must be paid back, he added.

“Russia was paying for the Black Sea Fleet in Ukraine… towards prolonging the agreement. That is, Russia was paying an advance. Therefore, the $11.4 billion is a debt that Ukraine has accrued to Russia,” he said.

Tensions between Moscow and Kiev have been running high since Russia annexed Crimea last month in defiance of the international community after pro-European demonstrators ousted Ukraine’s pro-Kremlin leaders.

A Greenpeace activist stands on September 26  2013 on the roof of a Gazprom gasoline station in the ...

A Greenpeace activist stands on September 26, 2013 on the roof of a Gazprom gasoline station in the Bulgarian city of Blagoevgrad during a protest against drilling in the Arctic
Nikolay Doychinov, AFP

Cutting discounts which had been in place, Russia hiked its gas price for Ukraine by 80 percent last week to $485.50 per 1,000 cubic metres, reflecting its deep displeasure with the ex-Soviet nation’s new westward course.

Gazprom is also seeking immediate payment for all recent gas deliveries to Ukraine, valued at over $2.2 billion.

Moscow has repeatedly shown readiness to use gas as a lever in conflicts with Ukraine, which remains dependent on imports from its resource-rich former Soviet master to keep the country running.

AFP
Written By

With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

You may also like:

World

US President Joe Biden delivers remarks after signing legislation authorizing aid for Ukraine, Israel and Taiwan at the White House on April 24, 2024...

Business

Meta's growth is due in particular to its sophisticated advertising tools and the success of "Reels" - Copyright AFP SEBASTIEN BOZONJulie JAMMOTFacebook-owner Meta on...

Business

The job losses come on the back of a huge debt restructuring deal led by Czech billionaire Daniel Kretinsky - Copyright AFP Antonin UTZFrench...

Tech & Science

TikTok on Wednesday announced the suspension of a feature in its spinoff TikTok Lite app in France and Spain.