Ukraine Unlawfully Halts Gazprom Europe Gas Deliveries

Naftogaz Ukraine, Ukranian state gas company, sent an official warning telegram to Gazprom, threatening Russian company by halting deliveries of Russian gas to Gazprom?s European customers.

According to the News-Ukraine agency which quoted the Ukrainian service of Deutsche Welle, the move was prompted by Gazprom?s unilateral decision to count 7.8 billion cubic meters of gas that is currently being stored in Ukrainian storage facilities as a payment for transit of the Russian gas through Ukraine.

The Russian gas has been stored in the Ukrainian underground facilities since the fall of 2004, and the Ukrainian authorities put the fuel under tight control.
Over the winter period of 2004-2005 Gazprom sent 40 requests asking Naftogaz to release the gas from the underground storage facilities for subsequent export to Europe, but Ukraine did not answer.

Having given up on the idea of freeing the gas from Ukrainian custody, the Russian gas monopoly announced that it will consider the gas as being payment for the Ukrainian transit of Russian gas.
So, if the two sides don?t reach an agreement by fall, when the heating season starts, Gazprom?s gas won?t reach Europe.