FX.co ★ Russia-Ukraine gas negotiations reach dead end

The result of difficult and lengthy negotiations between Russia’s state-owned gas giant Gazprom and Ukraine’s Naftogaz was disappointing. Gazprom’s decided to switch to upfront payment for its gas supplies. Nice words and big promises will no way replace timely payments of gas bills. The Kiev government puts off the payment day using various excuses and the situation in the country as a whole. The Russian side had nothing else to do but introduce pre-payment system. The decision approved by the Government of the Russian Federation and the Board of Directors of Gazprom has already come into effect. Overdue debt for Russian gas delivered to Ukraine has come in at $4.458 billion: $1.451 billion for November-December 2013 and $3.007 billion for April-May 2014, the official statement on the Gazprom website reads. In addition to political unrest, Ukraine now faces energy crisis. Even the EU, the Ukraine’s angel guardian, recognizes the need to pay fully for the received energy. Just one small thing is lacking: take loans to pay off debts.