MOSCOW, May 15 (RIA Novosti) – Moscow doubts Kiev will be able to pay for Russian gas supplies even if provided discounts because of the economic crisis in the country, Russian Energy Minister Alexander Novak said Thursday.
“We do not have any guarantees that even with a price of $100 [per thousand cubic meters] … for example, the Ukrainian side will be able to pay,” Novak said.
Novak emphasized that the economic situation in the country is currently characterized by “total insolvency.”
According to Gazprom, Ukraine’s accumulated debt for previous deliveries totals $3.5 billion. On April 1, the price of Russian gas for Ukraine rose to $485 per thousand cubic meters from $268.50, as Russia withdrew two major discounts. Ukraine refuses to recognize the new gas price, which is fully in line with the contract that the two states signed in 2009.
Gazprom said it would stop deliveries of natural gas to Ukraine if Kiev failed to prepay for future deliveries by June 2. The company also voiced concerns that Ukraine’s Naftogaz could fail to fulfill its commitments on gas transit, siphoning off gas destined for European consumers.
