Russia halts gas supplies to Ukraine

(Vatican Radio)  Russia has halted all natural gas supplies to Ukraine as Kiev announced the immediate suspension of Russian natural gas purchases. The standoff came after negotiations broke down between the two neighbors. 

Listen to the report by Stefan Bos:

Russia's state energy-giant Gazprom said it is halting deliveries because "Ukraine did not pay for July supplies."

Wednesday's announcement came as a setback for the European Commission, the EU's executive. Maroš Šefčovič, the Commission's Vice President for Energy Union, attended the price talks, which were aimed at keeping supplies running for the next three to six months. 

"We returned to Brussels yesterday very late from Vienna. I would not hide that we hoped that we would come back with a better news. And that the results of our meeting which we had been preparing for some time and during quite a few last minute mediation over the weekend would produce a more constructive and forward looking outcome," he said. 

Russia dramatically increased the price it charges Ukraine for natural gas following the February 2014 ouster of Kremlin-backed President Viktor Yanukovych. 

Transit Nation

Ukraine remains a key transit country of Russian natural gas for European countries. Yet Vice President Šefčovič played down fears that the price dispute between the two neighbors would once again lead to natural gas disruptions in Europe. 

"Today, we are in a totally different situation than last year where the gas deliveries to Ukraine were completely interrupted," he explained. "Today we have strong mechanisms of the reverse flows. We are much better prepared in Europe for any eventual problems with energy supplies. And therefore I would like to highlight that both gas deliveries to Ukraine but also transit to the EU are not endangered." 

The tensions come amid ongoing fighting between Russian-backed separatists and Ukrainian government forces in eastern Ukraine. 

In one of the latest incidents, the Ukrainian military said one serviceman was killed and ten others were wounded in separatist attacks in the troubled east in the 24 hours up to mid-day Wednesday. 

Tensions have also spread beyond Ukraine's borders. In a controversial move, Russia's Prosecutor-General's Office announced it is reviewing the legality of a decision in 1991 granting three Baltic countries independence from the Soviet Union. Latvia, Estonia and Lithuania have condemned what they view as Russia's aggression in Ukraine and have asked for more protection from the NATO military alliance.