Ukraine crisis: 'Very concerned' US issues warning to Russia against use of military force

 

Ukraine risks its supply of gas being switched off after the country's new government told Moscow it was suspending payments for deliveries, raising the prospect of parts of wider Europe also being deprived of vital Russian supplies.

Yesterday's announcement was the latest escalation in a dispute between the two countries. Vladimir Putin wrote to all 18 European nations warning that Russia could no longer tolerate "further violation" in Kiev's unwillingness to pay for energy.

The stalemate over liquid gas supplies could lead to disruption further west, as around half the natural gas bought by EU states from Russia is pumped through Ukrainian territory. South-eastern states such as Austria and the Czech Republic are particularly dependent.

Andriy Kobolev, chief executive of Ukraine's state-controlled energy company Naftogaz, said the decision had been made as the increase in the price Russia charged for gas since protests forced president Viktor Yanukovych from office was unacceptable. "We have suspended payments for the period of the price negotiations," he said.

 

The Russian gas giant Gazprom has raised gas prices to Ukraine from £160 to £289 per 1,000 cubic metres, claiming Kiev is no longer eligible for subsidies previously offered in return for the Kremlin's leasing of the naval base at Sevastopol in the now annexed Crimean peninsula. Gazprom also maintains Ukraine owes it at least £1.2bn for previously unpaid gas bills, a sum that the near-bankrupt government in Kiev has no hope of repaying.

Such is Ukraine's dire economic plight that yesterday's cessation of payments was seen by some analysts as merely a de facto recognition of what had already happened after the country failed to pay the latest instalment of over $500m (£298m) it owed Gazprom earlier this month. "We are probably steering towards Russia turning off its gas provision," the Ukrainian energy minister Yuri Prodan was quoted as saying in an interview with the German newspaper Börsen-Zeitung.

European leaders have been working on ways to keep supplies flowing to EU states if supplies are disrupted, including liquefied natural gas from Qatar or shale gas from North America. Plans have also been drawn up to provide relief supplies via interconnectors from Germany.

Moscow said it does not wish to turn off Ukraine's gas if it can be avoided and promised to honour all its commitments to EU customers. However, the US introduced new sanctions on Friday against people it had linked to Russia's Crimea annexation.

Gennady Timchenko, a billionaire oil and gas trader whose assets have been frozen, hailed his inclusion on the sanctions list as a sign he was a Russian patriot.

"The fact I was included was a little surprising, maybe, but it was quite an honour," he told the state-run Rossiya TV station. The result of sanctions, he warned, would be more Russian natural gas would be sold to Asia instead.

Start your day with The Independent, sign up for daily news emails
Voices
There will be a chance to bid for a rare example of the SAS Diary, collated by a former member of the regiment in the aftermath of World War II but only published – in a limited run of just 5,000 – in 2011
charity appealTime is running out to secure your favourite lot as our auction closes at 2pm tomorrow
Arts and Entertainment
Mark Wright and Bianca Miller in the final of The Apprentice
tvMark Wright and Bianca Miller fight for Lord Sugar's investment
Arts and Entertainment
X Factor winner Ben Haenow has scored his first Christmas number one
music
Arts and Entertainment
James May, Jeremy Clarkson and Richard Hammond in the Top Gear Patagonia Special
tv
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
News
File: James Woods attends the 52nd New York Film Festival at Walter Reade Theater on September 27, 2014
peopleActor was tweeting in wake of NYPD police shooting
News
Claudia Winkleman and co-host Tess Daly at the Strictly Come Dancing final
people
News
i100
Extras
indybest
News
peopleLiam Williams posted photo of himself dressed as Wilfried Bony
Sport
Martin Skrtel heads in the dramatic equaliser
SPORTLiverpool vs Arsenal match report: Bandaged Martin Skrtel heads home in the 97th-minute
Arts and Entertainment
The Apprentice finalists Mark Wright and Bianca Miller
tvBut who should win The Apprentice?
News
The monkey made several attempts to revive his friend before he regained consciousness
video
Extras
indybest
News
Elton John and David Furnish will marry on 21 December 2014
peopleSinger posts pictures of nuptials throughout the day
Life and Style
A still from the 1939 film version of Margaret Mitchell's 'Gone with the Wind'
life
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: National Account Manager / Key Account Sales

£30000 - £35000 per annum: Recruitment Genius: An opportunity has arisen for a...

Recruitment Genius: Operations Manager

£30000 - £35000 per annum: Recruitment Genius: An exciting opportunity to join...

Recruitment Genius: Recruitment Consultant

£30000 - £35000 per annum: Recruitment Genius: We have an excellent role for a...

Recruitment Genius: IT Support Analyst - Bristol

Negotiable: Recruitment Genius: An IT Support Analyst is required to join the ...

Day In a Page

The week Hollywood got scared and had to grow up a bit

The week Hollywood got scared and had to grow up a bit

Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

Panto dames: before and after

From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
Thirties murder mystery novel is surprise runaway Christmas hit

Thirties murder mystery novel is surprise runaway Christmas hit

Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

Anne-Marie Huby: 'Charities deserve the best'

Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
The botanist who hunts for giant trees at Kew Gardens

The man who hunts giants

A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there
The 12 ways of Christmas: Spare a thought for those who will be working to keep others safe during the festive season

The 12 ways of Christmas

We speak to a dozen people who will be working to keep others safe, happy and healthy over the holidays
Birdwatching men have a lot in common with their feathered friends, new study shows

The male exhibits strange behaviour

A new study shows that birdwatching men have a lot in common with their feathered friends...
Diaries of Evelyn Waugh, Virginia Woolf and Noël Coward reveal how they coped with the December blues

Famous diaries: Christmas week in history

Noël Coward parties into the night, Alan Clark bemoans the cost of servants, Evelyn Waugh ponders his drinking…
From noble to narky, the fall of the open letter

From noble to narky, the fall of the open letter

The great tradition of St Paul and Zola reached its nadir with a hungry worker's rant to Russell Brand, says DJ Taylor
A Christmas ghost story by Alison Moore: A prodigal daughter has a breakthrough

A Christmas ghost story by Alison Moore

The story was published earlier this month in 'Poor Souls' Light: Seven Curious Tales'
Marian Keyes: The author on her pre-approved Christmas, true love's parking implications and living in the moment

Marian Keyes

The author on her pre-approved Christmas, true love's parking implications and living in the moment
Bill Granger recipes: Our chef creates an Italian-inspired fish feast for Christmas Eve

Bill Granger's Christmas Eve fish feast

Bill's Italian friends introduced him to the Roman Catholic custom of a lavish fish supper on Christmas Eve. Here, he gives the tradition his own spin…
Liverpool vs Arsenal: Brendan Rodgers is fighting for his reputation

Rodgers fights for his reputation

Liverpool manager tries to stay on his feet despite waves of criticism
Amir Khan: 'The Taliban can threaten me but I must speak out... innocent kids, killed over nothing. It’s sick in the mind'

Amir Khan attacks the Taliban

'They can threaten me but I must speak out... innocent kids, killed over nothing. It’s sick in the mind'
Michael Calvin: Sepp Blatter is my man of the year in sport. Bring on 2015, quick

Michael Calvin's Last Word

Sepp Blatter is my man of the year in sport. Bring on 2015, quick