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Russian Federation halts gas supplies to Ukraine

Tensions between Russia and Ukraine escalated further on Wednesday as Ukraine made a decision to stop buying Russian natural gas – hoping to rely on supplies from other countries – and closed its airspace to its eastern neighbour.

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Ukraine has imported 400 million cubic metres of Russian gas so far this month, Ukrtransgaz data showed, and Energy Minister Volodymyr Demchyshyn said this week that Kiev had enough gas in reserve without buying any more. Moscow could use the air space for “Provocations”, he said.

Naftogaz of Ukraine noted that payments for Russian gas will be transferred gradually, in small tranches.

Ukraine and Russian Federation already had banned direct flights between the two countries, affecting hundreds of thousands of people and families split between the two post-Soviet countries.

“For the past year and a half, we have shown that we can ensure the uninterrupted transit of Russian gas regardless of whether it comes to us or not and whether it’s in the summer or winter season”.

Ukraine banned Russian airlines Aeroflot, Transaero, S7, Red Wings, Gazpromavia, Rossiya and Ural Airlines.

The two sides have been locked in disputes over gas supplies, pricing and debts, while the European Union (EU) played as mediator to avoid possible outage of its gas supplies from the east. “We could, and maybe in this situation we need to, make a decision about halting deliveries of coal by our commercial organizations which deliver to Ukrainian power stations”, he said.

“They got everything wrong”.

Ukraine’s prime minister Arseniy Yatsenyuk ordered a halt to purchases of Moscow’s gas because his country now has sufficient fuel in storage and can buy gas more cheaply from Europe, as it seeks to wean itself off Russian energy.

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Crimea declared a state of emergency Sunday after four main power transmission lines from Ukraine had been blown up, leaving the peninsula without 80% of power supplies.

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