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European Commission calls an emergency meeting amid failed gas negotiations with Ukraine

Earlier, Russia's Gazprom has switched to prepayment mode in supplies to Ukraine's Naftogaz as of 10:00 Moscow time

BRUSSELS, June 16. /ITAR-TASS/. The European Commission calls an emergency meeting of the Gas Coordination Group amid the failure of three-party negotiations on the gas issue between Russia and Ukraine with the mediation of the European Commission. A source in the European authorities reported this to ITAR-TASS on Monday.

The source added that an official statement about this would follow in the nearest time.

“The meeting of the Gas Coordination Group with the participation of representatives of the European energy sector will take place in Brussels in the nearest time in order to estimate the possible consequences of cuts in supplies of Russian gas to Ukraine for the European energy sector,” the source stressed.

“During three months (of tripartite talks that started May 2. — ITAR-TASS) we were observing how Gazprom’s proposal evolved in terms of prices, as well as in terms of deadlines. Within the same period despite all mediatory efforts of the European Commission, Kiev did not take any real steps towards compromise,” the source noted.


{article_photo:736183:'Gazprom introduces prepayment system for gas supplies to Ukraine':'right':'50'}Prepayment mode introduced for Ukraine

On Monday, Russia’s Gazprom has introduced pre-payment for gas supplies to Ukraine’s oil and gas company Naftogaz in full compliance with the effective contract, as follows from the company’s news release.

“The decision is made because of chronic non-payment by Naftogaz of Ukraine. The overdue debt for supplied Russian gas stands at $4.5 billion — $1.5 billion for November-December 2013, and $3 billion for April-May 2014,” the news release says.

The deadline for Naftogaz of Ukraine's transfer of $1.95 billion payment to Gazprom has expired at 10:00 a.m. Moscow time, and no payment was received by the Russian gas company.


Gazprom files suit vs. Naftogaz

Furthermore, Russia’s Gazprom reported on Monday that it has filed a $4.5 billion suit against Ukraine’s energy company Naftogaz to the Stockholm arbitration court.

“Gazprom has turned to the Stockholm international arbitration court with a suit against Naftogaz Ukrainy seeking the recovery of a $4.5 billion debt due to the company’s improper fulfillment of the contract signed on January 19, 2009 on purchasing and selling of gas in the years 2009 through 2019,” the company said.