Brussels, 29/10/2013 (Agence Europe) - The Russian gas company, Gazprom, has expressed concern about delays incurred by Ukraine when it comes to payment, citing the sum of $882 million still due.
The president of the Russian public group, Alexei Miller, cited in the Russian media, said they were greatly concerned by the current situation. He explained that the payment date for the sum of $882 million for gas delivered in August had expired on 1 October. Miller warned that the situation is very serious as, “under the terms of the contract, if the payment conditions are not met then we shall have to move to a system of advanced payments”.
Two gas disputes between Russia and Ukraine, during the winters of 2006 and 2009, have already led to supplies of Russian gas to the EU being interrupted, as 80% of gas imports supplied by Gazprom transit through Ukrainian gas pipelines. Gazprom provides over 25% of the gas consumed in Europe, and its exports have been rising strongly since early 2013 (see EUROPE 10944).
This warning from Russia illustrates the growing tension linked to the Eastern Partnership summit, scheduled to be held end November in Vilnius, and which is to seal rapprochement between the EU and Ukraine with the signing of an association agreement including a free-trade area. Russia does not view this rapprochement kindly and has said several times that the Ukrainian demands to reduce its gas prices would only be possible if Ukraine joined the customs union with Belarus and Kazakhstan. (EH/transl.jl)