Gazprom to Supply Gas to Ukraine Only With Debts Paid Off by End of 2014

MOSCOW, November 24 (Sputnik) — Russia's energy giant Gazprom will not supply gas to Ukraine if it fails to clear its debts by the end of 2014, a top Gazprom executive told Sputnik Monday.

"There will be no supply. We have signed agreements between two companies, Ukraine's Naftogaz and Gazprom in addition to the contract that is in force. There is a political document between the authorities of Ukraine and of the Russian Federation. I believe honorable people must live up to them (agreements)," Vladimir Markov, a member of Gazprom's Management Committee and Head of the Department for Relations with the Russian Federation Authorities told Sputnik.

"They [agreements] foresee a certain payment by Ukraine for both already delivered volumes and new supplies under certain conditions, and the according delivery by us. If one of the sides [Ukraine] fulfils its part of the agreement then I don't think Gazprom will fail do live up to its part. It [Gazprom] will fulfill its obligations," Markov added.

On the subject of the new deliveries of gas, he said that, "as yet, Ukraine has not formally applied for new deliveries. As soon as it applies for some, we will be ready to supply gas in due course, after the transaction is complete. We have sufficient volumes."

Ukraine has been receiving gas through reverse flows from a number of European states since Russia switched Ukraine to a prepayment system in June, due to its large debt.

In October, the final round of gas talks between Russia and Ukraine, brokered by the European Union, finished with the signing of a "winter package" agreement, securing Russian gas supplies to Ukraine until March 2015.

Earlier in November, Ukrainian Energy Minister Yuri Prodan said that Ukraine was planning to buy about 1.5 billion cubic meters of gas from Russia by the end of 2014. The purchase will start as soon as it gets cold, most likely on December 1, he added.