Russia’s Gazprom closes gas pipes to Ukraine

Global Business

Russia’s state-run energy giant, Gazprom, has cut all natural gas supplies top Ukraine after failing to reach an agreement on payments. The Gazprom decision could also disruption gas supplies to Europe. 

Russia wanted $1.95 billion to continue gas shipments to Ukraine. Now Russia warns there are, “significant,” risks for gas transit to Europe through Ukraine. Around 15 percent of EU gas supplies flow through Ukraine.

The CEO of Russia state energy giant Gazprom says Ukraine has had gas for free for far too long. Gazprom spokesman, Sergey Kupriyanov, said, “We will supply gas only in the amount paid for. They paid zero. Correspondingly it’s zero, he said.”

While winter is still a long way off,. Sergei Agibalov from Russia’s Energy and Finance Institute says this stalemate could drag on for months.

Yaroslav Lissovolik, Chief Economist, Deutsche Bank, Full Sot : “In the short term, I don\’t see any major disruptions taking place, partly because Ukrainians in recent periods have increased their gas supplies in storage so they have a bit of a reserve to withstand cuts in supply in the near term. If this goes on for longer then clearly this may become more of an issue.”

According to Ukrainian officials, Moscow also halted all imports of Ukrainian agricultural products. CCTV’s Tom Barton reports from Moscow.

Russia’s Gazprom closes gas pipes to Ukraine

Russia’s Gazprom closes gas pipes to Ukraine

Russia's state-run energy giant, Gazprom, has cut all natural gas supplies top Ukraine after failing to reach an agreement on payments. The Gazprom decision could also disruption gas supplies to Europe.
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