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Gazprom Confirms Gas Delivery Cutoff to Ukraine on July 1

© Sputnik / Maksim Blinov / Go to the mediabankGazprom building in Moscow
Gazprom building in Moscow - Sputnik International
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CEO Alexei Miller said that Russian energy giant Gazprom has shut the valves for gas deliveries to Ukraine and will not deliver any fuel until Kiev makes a prepayment.

A worker checks equipment at an Dashava underground gas storage facility near Striy, Ukraine May 28, 2015 - Sputnik International
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MOSCOW (Sputnik) Russian energy giant Gazprom has shut the valves for gas deliveries to Ukraine and will not deliver any fuel until Kiev makes a prepayment, Gazprom CEO Alexei Miller said Wednesday.

“Ukraine has not made a prepayment for gas deliveries for July. As of 10:00 this morning, July 1, Gazprom has halted gas deliveries. Gazprom will not deliver any gas to Ukraine at any price until there is a prepayment,” Miller said.

On Tuesday, Ukraine’s Energy Minister Volodymyr Demchyshyn said the government had rejected Gazprom’s gas price offer of $247 per 1,000 cubic meters. The proposal was made at the trilateral group meeting in Vienna that included an EU representative.

Ukraine wants to buy Russian gas at a discount of 30 percent, or $100 per 1,000 cubic meters.

This discount was stipulated in the terms of the expired winter package deal that was initially devised to last Ukraine through the peak winter season. It was prolonged in April for three months.

Russia argued that the new price of $247 per 1,000 cubic meters was still lower than the global market price.

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