Cash for Gas: Russia Threatens to Shut Off Gas in Two Days for Lack of Payment; Meter Maid Called In

February 24, 2015

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Courtesy of Mish.

Meter Maid Called to Resolve Dispute

Last year, Russia shut off gas deliveries to Ukraine for lack of payment. Most of the flow through Ukraine goes to Europe, but Russia accused Ukraine of siphoning off gas without paying for it.

In December, Ukraine agreed to prepay for gas. The flows resumed, but a major dispute has recently arisen.

Gas Dispute

Yesterday, Ukraine complained it has not received gas it paid for.
Today, Russia complains it has not been paid for gas delivered.

I have called in the meter maid to investigate these claims and counterclaims.

Shutoff in Two Days

RT reports Kiev Cash-for-Gas Failure Could Cost EU its Supply.

Russia will completely cut Ukraine off gas supplies in two days if Kiev fails to pay for deliveries, which will create transit risks for Europe, Gazprom has said.

Ukraine has not paid for March deliveries and is extracting all it can from the current paid supply, seriously risking an early termination of the advance settlement and a supply cutoff, Gazprom’s CEO Alexey Miller told journalists. The prepaid gas volumes now stand at 219 million cubic meters.

“It takes about two days to get payment from Naftogaz deposited to a Gazprom account. That’s why a delivery to Ukraine of 114 million cubic meters will lead to a complete termination of Russian gas supplies as early as in two days, which creates serious risks for the transit to Europe,” Miller said.

Last week, Russian Prime Minister Dmitry Medvedev ordered the energy minister and the head of Gazprom to prepare proposals on fuel deliveries to the self-proclaimed Republics of Donetsk and Lugansk (DPR and LPR) after Kiev had cut off the delivery pipeline into the southeastern regions. Ukraine’s Naftogaz said it had halted gas supplies to eastern regions due to broken pipelines.