Russia’s gas giant Gazprom says Ukraine will now only receive the gas supplies it has paid for in advance. The decision comes after a deadline for Kyiv to pay nearly 2 billion dollars of debts, or have its supply cut off, passed.<br /><br />A spokesperson for Gazprom said Ukraine’s state-controlled Naftogaz had also failed to pay for June deliveries and that from now on it must pay ‘up front’ for supplies.<br /><br />Moscow says it will continue to supply contracted volumes of gas to European countries and that Naftogas was required to ensure their delivery.<br /><br />The tariff for gas was increased by Russia after the ousting of Ukrainian president Viktor Yanukovych. Kyiv wants to pay the previously agreed amount. <br /><br />Last ditch talks between the two countries failed to resolve the dispute and a compromise proposal put forward by the EU was rejected by Moscow.
