Gazprom, the biggest gas supplier in the Russian energy market, has issued a warning to Ukraine that the gas supply to Ukraine could be stopped until the price is finalized.

Price negotiations were going on in between the companies for quite some time, and Russia has been taking measures to make Ukraine to pay up the dues. The company said that the gas supply may be interrupted until all the dues are paid and henceforth, Gazprom will not supply gas for credit.

Russian Government pressurizing Ukraine to pay up dues

Russian Government pressurizing Ukraine to pay up dues

Gazprom spokesman Sergei V. Kupriyanov said in a statement to the press, “Gazprom supplies to Ukraine only the amount that has been paid for, and the amount that has been paid for is zero”.

There was no information regarding whether or not the gas supply has been stopped already or the company will continue to supply gas for some more day. However, the company made it clear that the Ukrainian gas supplier Naftogaz is still responsible to mediate the contract between Russia and European Union for transport of gas to the EU, which puts more pressure on Naftogaz.

“The European Commission has received timely notification of possible interruptions in gas transit, in the event that Naftogaz Ukrainy siphons off gas from transit flows,” Gazprom said in a statement.

Naftogaz is already dealing with the lawsuit from Gazprom for unpaid dues amounting to $4.5 million. This move from Gazprom has alarmed EU officials as gas supply to the other regions may be hindered as well.

Naftogaz is now required to pay $385 per 1,000 cubic meters of gas which is increased by 44 percent from what the company was paying previously.

This is not the first time that the European Union is facing such a situation as Gazprom has cut off supply twice in 2006 and 2009 for political and financial reasons.