Gazprom Hopes for Strict Compliance on Gas Deliveries to Third Countries

MOSCOW, June 16 (RIA Novosti) — Russia’s gas giant Gazprom says it hopes for strict compliance by Ukraine’s Naftogaz on fuel deliveries to Europe and has informed the European Commission on possible failures, according to a company press release on Monday.

“Monday morning Gazprom implemented a prepayment scheme for gas deliveries for [Ukraine’s] Naftogaz,” the press release reads.

Ukraine’s Naftogaz is obliged to supply the delivery of natural gas to third countries in full accordance with the current contract, the statement continued.

“Gazprom hopes for strict compliance by Ukraine’s Naftogaz in its contractual obligations on gas transits to third countries,” the press release said.

Gazprom implemented the prepayment plan for the delivery of Russian fuel to Ukraine’s Naftogaz at 10:00 a.m. local time (06:00 a.m. GMT) on Monday after putting it off several times this month. The company said Naftogaz’ arrears for Russian gas deliveries stood at $4.458 billion.

Ukraine’s gas debt to Russia has been building up since 2013 as the country found itself amid a deep political crisis. Naftogaz’ discounted rate was scrapped in April after Kiev failed to deliver on its debt, which now accumulates at a rate of some $1 billion per month.

Starting Monday, the Ukrainian company will only receive the amount of gas it will have paid for in advance. No payments have been received for June preliminary bill, yet. The latest price proposed by Russia stands at $385, which is the average market price Gazprom offered Kiev after axing a deal to subsidize gas exports to Ukraine.

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