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Putin warns Ukraine on gas supplies, urges talks

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President Vladimir Putin warned Wednesday Russia may begin requiring advance payment for gas supplies unless Ukraine comes to the negotiating table over its unpaid energy bills.

Russia's state-controlled natural gas company "Gazprom will only send gas in the amounts that the Ukrainian side has paid for a month in advance" under the changed sale terms being contemplated, Putin said at a government meeting according to televised excerpts.

"They will receive as much as they have paid for," he said.

Russia says Ukraine now owes it $2.2 billion for natural gas supplies, and Gazprom last week demanded that Ukraine "take immediate measures" to settle the debt.

Prime Minister Dmitry Medvedev insisted during the meeting that the situation was "critical" and urged the government to switch to a system of advance payments.

Putin however said that for now Russia would refrain from doing so, citing Ukraine's economic difficulties and Moscow's ongoing talks with the European Union.

Russian gas supplies to Ukraine and western Europe
Russian gas supplies to Ukraine and western Europe
, AFP

Earlier this month, Gazprom announced it was raising the price of gas exports to Ukraine by more than a third, scrapping a previous discount amid soaring political tensions between the two ex-Soviet countries.

Ukraine now has to pay $485 dollars for 1,000 cubic metres of gas, the highest price of any of Gazprom's clients in Europe.

Kiev charges that Moscow is punishing it for its Western ambitions and vowed to take its energy-rich neighbour to court.

Speaking at the government meeting, Putin added that Russia was not in a position to prop up Ukraine's struggling economy indefinitely.

"The situation today is strange to say the least. As we know, our partners in Europe recognise the legitimacy of Kiev's current authorities but are doing nothing to support Ukraine. Not a single dollar, not a single cent.

"The Russian Federation does not recognise the legitimacy of the authorities in Kiev but is still continuing to render it economic assistance and subsidise Ukraine's economy in the amount of hundreds of millions and billions of dollars," Putin said.

"Of course, this cannot last forever."

Protesters hold
Protesters hold "an angry Matryoshka" with a weapon and placard reading "Boycott Russia !" during a demonstration in central Kiev on April 9, 2014
Yuriy Kirnichny, AFP

Putin also expressed hope that Kiev would not take any irreversible steps and Russia's diplomatic efforts would be successful.

"I hope that the acting (authorities) will not do anything that can't be fixed later," he said, expressing hope that Russian efforts to calm tensions through talks would have a "positive" result.

Russian officials have warned Ukrainian authorities not to use force against pro-Russian proteseors which have seized government buildings in eastern cities, and have worried Ukraine may move closer to the EU and NATO.

US Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov are planning to meet in Europe next week to discuss preparations for possible four-way crisis talks with Ukraine and EU diplomats.

Russia insists that representatives from Ukraine's Russian-speaking eastern regions be represented in any such negotiations.

President Vladimir Putin warned Wednesday Russia may begin requiring advance payment for gas supplies unless Ukraine comes to the negotiating table over its unpaid energy bills.

Russia’s state-controlled natural gas company “Gazprom will only send gas in the amounts that the Ukrainian side has paid for a month in advance” under the changed sale terms being contemplated, Putin said at a government meeting according to televised excerpts.

“They will receive as much as they have paid for,” he said.

Russia says Ukraine now owes it $2.2 billion for natural gas supplies, and Gazprom last week demanded that Ukraine “take immediate measures” to settle the debt.

Prime Minister Dmitry Medvedev insisted during the meeting that the situation was “critical” and urged the government to switch to a system of advance payments.

Putin however said that for now Russia would refrain from doing so, citing Ukraine’s economic difficulties and Moscow’s ongoing talks with the European Union.

Russian gas supplies to Ukraine and western Europe

Russian gas supplies to Ukraine and western Europe
, AFP

Earlier this month, Gazprom announced it was raising the price of gas exports to Ukraine by more than a third, scrapping a previous discount amid soaring political tensions between the two ex-Soviet countries.

Ukraine now has to pay $485 dollars for 1,000 cubic metres of gas, the highest price of any of Gazprom’s clients in Europe.

Kiev charges that Moscow is punishing it for its Western ambitions and vowed to take its energy-rich neighbour to court.

Speaking at the government meeting, Putin added that Russia was not in a position to prop up Ukraine’s struggling economy indefinitely.

“The situation today is strange to say the least. As we know, our partners in Europe recognise the legitimacy of Kiev’s current authorities but are doing nothing to support Ukraine. Not a single dollar, not a single cent.

“The Russian Federation does not recognise the legitimacy of the authorities in Kiev but is still continuing to render it economic assistance and subsidise Ukraine’s economy in the amount of hundreds of millions and billions of dollars,” Putin said.

“Of course, this cannot last forever.”

Protesters hold

Protesters hold “an angry Matryoshka” with a weapon and placard reading “Boycott Russia !” during a demonstration in central Kiev on April 9, 2014
Yuriy Kirnichny, AFP

Putin also expressed hope that Kiev would not take any irreversible steps and Russia’s diplomatic efforts would be successful.

“I hope that the acting (authorities) will not do anything that can’t be fixed later,” he said, expressing hope that Russian efforts to calm tensions through talks would have a “positive” result.

Russian officials have warned Ukrainian authorities not to use force against pro-Russian proteseors which have seized government buildings in eastern cities, and have worried Ukraine may move closer to the EU and NATO.

US Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov are planning to meet in Europe next week to discuss preparations for possible four-way crisis talks with Ukraine and EU diplomats.

Russia insists that representatives from Ukraine’s Russian-speaking eastern regions be represented in any such negotiations.

AFP
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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.

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