Russia state-owned gas firm Gazprom says it will cut off supplies to Ukraine after negotiators failed to resolve a payment dispute before a key deadline expired.
Representatives from Ukraine, Russia and the European Union held meetings over the weekend in an effort to avert the crisis, but no agreement was reached.
Gazprom said Monday that Ukraine’s total debt is $4.5 billion. The state-owned gas firm will now only deliver gas that Ukraine has paid for in advance.
“At this moment no payments for old debt or June were paid,” said Gazprom spokesman Sergey Kupriyanov. “All charts show zeroes.”
In April, Gazprom hiked the price it charges Ukraine by about 80% to $485.50 per thousand cubic meters of gas. By comparison, Gazprom charged European countries an average of $377.50 per thousand cubic meters in 2013.
“Due to the intentional unilateral refusal by Russia to settle this conflict, Ukraine’s and the EU’s energy security are being undermined,” Ukrainian Prime Minister Arseniy Yatsenyuk said Friday.