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| Gazprom Stops Supplying Natural Gas to Ukraine | Gazprom Stops Supplying Natural Gas to Ukraine |
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| MOSCOW — The Russian energy giant Gazprom stopped supplying natural gas to Ukraine on Monday, warning that the reduction could diminish the amount of gas flowing to the rest of Europe and escalating the political crisis between the two countries. | MOSCOW — The Russian energy giant Gazprom stopped supplying natural gas to Ukraine on Monday, warning that the reduction could diminish the amount of gas flowing to the rest of Europe and escalating the political crisis between the two countries. |
| After the government in Kiev failed to meet a 10 a.m. deadline imposed by Moscow to pay a nearly $2 billion installment for gas, Gazprom announced that it would no longer supply on credit. | After the government in Kiev failed to meet a 10 a.m. deadline imposed by Moscow to pay a nearly $2 billion installment for gas, Gazprom announced that it would no longer supply on credit. |
| “Gazprom supplies to Ukraine only the amount that has been paid for, and the amount that has been paid for is zero,” a Gazprom spokesman, Sergei Kupriyanov, told reporters. | “Gazprom supplies to Ukraine only the amount that has been paid for, and the amount that has been paid for is zero,” a Gazprom spokesman, Sergei Kupriyanov, told reporters. |
| A source close to Gazprom said the gas flow into Ukraine had been reduced by the amount intended for Ukraine itself. | A source close to Gazprom said the gas flow into Ukraine had been reduced by the amount intended for Ukraine itself. |
| All of the gas flowing into Ukraine as of 10 a.m. Monday was meant only for transporting across the country to Europe, the source said. | All of the gas flowing into Ukraine as of 10 a.m. Monday was meant only for transporting across the country to Europe, the source said. |
| In Kiev, the energy minister, Yuri Prodan, told a cabinet meeting that “Gazprom has decreased deliveries of gas to zero,” local press reports said. | In Kiev, the energy minister, Yuri Prodan, told a cabinet meeting that “Gazprom has decreased deliveries of gas to zero,” local press reports said. |
| Gazprom warned the authorities in Kiev that the Ukrainian gas company, Naftogaz, was obliged under existing contracts to ensure that European gas supplies transited the country without interruption. | Gazprom warned the authorities in Kiev that the Ukrainian gas company, Naftogaz, was obliged under existing contracts to ensure that European gas supplies transited the country without interruption. |
| “The European Commission has received timely notification of possible interruptions in gas transit, in the event that Naftogaz Ukrainy siphons off gas from transit flows,” said a statement from Gazprom. | “The European Commission has received timely notification of possible interruptions in gas transit, in the event that Naftogaz Ukrainy siphons off gas from transit flows,” said a statement from Gazprom. |
| The company, which is 50.01 percent owned by the Russian government, also said that it was filing a lawsuit in an arbitration court in Stockholm to force Ukraine to pay $4.5 billion for gas that had already been delivered. Gazprom has repeatedly insisted that the dispute is more about getting paid than about the political tensions between the two countries. | The company, which is 50.01 percent owned by the Russian government, also said that it was filing a lawsuit in an arbitration court in Stockholm to force Ukraine to pay $4.5 billion for gas that had already been delivered. Gazprom has repeatedly insisted that the dispute is more about getting paid than about the political tensions between the two countries. |
| Naftogaz responded by saying that it had filed a suit of its own in the Stockholm court against Gazprom to establish a fair market price for the gas. Naftogaz said the suit would also ask the court to fine Gazprom for what the Ukrainian company claims to be $6 billion in overcharging since 2010. | Naftogaz responded by saying that it had filed a suit of its own in the Stockholm court against Gazprom to establish a fair market price for the gas. Naftogaz said the suit would also ask the court to fine Gazprom for what the Ukrainian company claims to be $6 billion in overcharging since 2010. |
| The Stockholm trade court, formally known as the Arbitration Institute of the Stockholm Chamber of Commerce, has long been used to settle East-West trade disputes because of Sweden’s neutrality. | |
| In a statement, the Ukrainian prime minister, Arseniy P. Yatsenyuk, said that Russia’s move to cut off the gas supply was part of a larger pattern of aggression by the Kremlin. | In a statement, the Ukrainian prime minister, Arseniy P. Yatsenyuk, said that Russia’s move to cut off the gas supply was part of a larger pattern of aggression by the Kremlin. |
| “This is not about gas,” Mr. Yatsenyuk said. “This is a general plan for the destruction of Ukraine.” He said the decision was the latest in a series of steps that “began with the annexation of Crimea, the Donbass territorists, supplying Russian weapons and sending Russian bandits to the territory of Ukraine.” | “This is not about gas,” Mr. Yatsenyuk said. “This is a general plan for the destruction of Ukraine.” He said the decision was the latest in a series of steps that “began with the annexation of Crimea, the Donbass territorists, supplying Russian weapons and sending Russian bandits to the territory of Ukraine.” |
| Mr. Yatsenyuk accused Russia of turning down a fair business offer as part of the broader geopolitical fight. “We have demonstrated to the world that we were willing to compromise,” he said. “A common compromise, proposed by the European Commission and Ukraine, was rejected by the Russians solely for political reasons.” | Mr. Yatsenyuk accused Russia of turning down a fair business offer as part of the broader geopolitical fight. “We have demonstrated to the world that we were willing to compromise,” he said. “A common compromise, proposed by the European Commission and Ukraine, was rejected by the Russians solely for political reasons.” |
| The European Commission, which has sought to mediate in the talks that started in early May, said in a statement overnight that there was still hope for an amicable resolution after the talks collapsed. “As the commission is convinced that a solution is still possible and in the interest of all parties concerned, it will reflect on the next steps and on when to bring the parties together again,” said the commission, which is the main policy-making arm of the European Union. | The European Commission, which has sought to mediate in the talks that started in early May, said in a statement overnight that there was still hope for an amicable resolution after the talks collapsed. “As the commission is convinced that a solution is still possible and in the interest of all parties concerned, it will reflect on the next steps and on when to bring the parties together again,” said the commission, which is the main policy-making arm of the European Union. |
| In another sign that Russia planned to ratchet up the economic pressure, the country’s food safety watchdog, Rosselkhoznadzor, was reported to have announced an immediate ban on the import of Ukrainian potatoes after shipments were said to have been found carrying a parasitic worm. | In another sign that Russia planned to ratchet up the economic pressure, the country’s food safety watchdog, Rosselkhoznadzor, was reported to have announced an immediate ban on the import of Ukrainian potatoes after shipments were said to have been found carrying a parasitic worm. |
| The report, from Interfax Ukraine, said the ban was because of “repeated detections” of the parasite. | The report, from Interfax Ukraine, said the ban was because of “repeated detections” of the parasite. |
| Before the crisis, about a quarter of Ukrainian exports had gone to Russia, and Ukrainian factories had benefited from a growing demand in the defense sector and from rising consumer purchasing power in Russia. | Before the crisis, about a quarter of Ukrainian exports had gone to Russia, and Ukrainian factories had benefited from a growing demand in the defense sector and from rising consumer purchasing power in Russia. |
| Russia is expected to take further measures against Ukraine before June 27, when the government in Kiev is due to sign a long-delayed association agreement with the European Union. An earlier failure to sign that agreement precipitated the political crisis in Ukraine. Moscow has selectively banned imports in the past as a way to pressure government decisions in Kiev. | Russia is expected to take further measures against Ukraine before June 27, when the government in Kiev is due to sign a long-delayed association agreement with the European Union. An earlier failure to sign that agreement precipitated the political crisis in Ukraine. Moscow has selectively banned imports in the past as a way to pressure government decisions in Kiev. |
| Gazprom had most recently ratcheted up the pressure on Ukraine by reducing gas supplies by about 50 percent in early March. The Russian tactics alarmed European officials because about a fifth of the European Union’s supply of natural gas flows through Ukraine. | Gazprom had most recently ratcheted up the pressure on Ukraine by reducing gas supplies by about 50 percent in early March. The Russian tactics alarmed European officials because about a fifth of the European Union’s supply of natural gas flows through Ukraine. |
| According to the United States Energy Information Agency, Ukraine imported from Russia 63 percent of the natural gas it consumed in 2012, producing the remaining 37 percent domestically. Earlier this year, Ukrainian officials said they had stockpiles to substitute for Russian imports for at least a month. | |
| Russia and Ukraine have been negotiating for weeks over the price for gas, which Russia had been delivering at a subsidized rate that was lower than that which it charged European customers. Russia wants Ukraine to pay $385 per 1,000 cubic meters, which is the standard measure for gas in Europe. That figure was up from $268, an increase of about 44 percent. | Russia and Ukraine have been negotiating for weeks over the price for gas, which Russia had been delivering at a subsidized rate that was lower than that which it charged European customers. Russia wants Ukraine to pay $385 per 1,000 cubic meters, which is the standard measure for gas in Europe. That figure was up from $268, an increase of about 44 percent. |
| Gazprom, the world’s largest natural gas producer, increased the price after Ukrainian protesters toppled the government, a Russian ally, in February. | Gazprom, the world’s largest natural gas producer, increased the price after Ukrainian protesters toppled the government, a Russian ally, in February. |
| Bitter divisions remain between Moscow and the new government in Kiev, which has accused the Kremlin of supporting an increasingly violent separatist movement in the east to destabilize the country. | Bitter divisions remain between Moscow and the new government in Kiev, which has accused the Kremlin of supporting an increasingly violent separatist movement in the east to destabilize the country. |
| The United States and Europe have imposed sanctions against some individuals connected to President Vladimir V. Putin of Russia and against a few banks over Moscow’s annexation of Crimea in March, but it has held off on a third round of punishment. The West has warned, however, that further sanctions would be imposed by the end of June if the violence in eastern Ukraine does not ebb. | The United States and Europe have imposed sanctions against some individuals connected to President Vladimir V. Putin of Russia and against a few banks over Moscow’s annexation of Crimea in March, but it has held off on a third round of punishment. The West has warned, however, that further sanctions would be imposed by the end of June if the violence in eastern Ukraine does not ebb. |
| Moscow has denied the allegations that it is covertly fueling the violence. | Moscow has denied the allegations that it is covertly fueling the violence. |
| Although Russia has said that it will not respond directly to the sanctions, the prospect of reduced gas supplies to Europe is considered an indirect method of pressuring Europe. There are backup supplies in storage in Europe and the summer has been fairly warm, so if supplies were cut, it would still be weeks before the situation became critical. | Although Russia has said that it will not respond directly to the sanctions, the prospect of reduced gas supplies to Europe is considered an indirect method of pressuring Europe. There are backup supplies in storage in Europe and the summer has been fairly warm, so if supplies were cut, it would still be weeks before the situation became critical. |
| Gazprom has cut off gas supplies twice before, in 2006 and 2009, over political and financial disputes. | Gazprom has cut off gas supplies twice before, in 2006 and 2009, over political and financial disputes. |