Russian gas exporter Gazprom said it has cut supplies to Ukraine after failing to strike a last minute deal with Kyiv over unpaid debts. Ukraine must now also make advance payments for its gas supplies.<br /><br />The breakdown in negotiations was swiftly followed by lawsuits from both parties.<br /><br />Gazprom CEO, Alexei Miller outlined the energy giants position: <br /><br />“Right after we implemented the pre-payment regime, we immediately filed a suit in the Stockholm arbitration court to make them pay their debt of $4.5 billion.”<br /><br />Gazprom’s Ukrainian counterpart Naftogaz, has filed its own complaint in Stockholm, claiming it’s overpaid on Russian gas for years.<br /><br />Gazprom’s CEO stressed that supplies to its European customers would continue, but, with safe transit reliant on Ukrainian pipes, he alluded that Kyiv may siphon gas to meet domestic demand.<br /><br />The spat, though economic in detail, appears increasingly political in nature. Kyiv’s failure to secure a better gas price comes after the ousting of former President Victor Yanukovych.
