WASHINGTON
U.S. State Department Spokesperson Jen Psaki has condemed Russia for threateing to cut-off gas supplies to Ukraine over the country's unpaid bill, following Russian President Vladimir Putin's letter to 18 leaders of European countries that import Russian gas expressing concerns over Ukraine’s increasing debt to Russia.
“Russia is using energy as a tool of coercion against Ukraine,” said Psaki Thursday, adding that the U.S. is taking steps to supply Ukraine with technical and financial support and is urging European countries to provide natural gas supplies to Ukraine.
On April 1, Alexei Miller, chief executive of Gazprom, Russia's state-owned gas supplier, announced a price increase of US$117 to US$385.5 per 1,000 cubic meters of gas to Ukraine and said it had not paid any of its US$1.7 billion debt. This followed Russian President Vladimir Putin's orders regarding the terminations of a number of Russian-Ukrainian agreements including one that gave Ukraine discounts on gas prices in return for Russia's lease on the port of Sevastopol where its Black Sea Fleet is stationed.
Ukraine’s government called the decision ‘a declaration of economic war,’ and has refused to pay its debt or the adhere to the price hike.
Meanwhile, Russian Prime Minister Dmitry Medvedev has said that Ukraine’s gas debt will hit US$16.6 billion in April.
Russian President Vladimir Putin in a letter to European leaders warns that Russia will cut-off Ukraine's gas supply if the country does not pay its debt, according to Russian news agency Itar-Tass.
The letter, to European countries that purchase Russian gas, contained a detailed description of the critical situation that has developed over Ukraine’s growing debt. It also warned of the consequences to European countries whose gas from Russia comes via Ukraine.
Kremlin spokesman Dmitry Peskov confirmed to Itar-Tass that the letter had been sent saying “the letter expresses extreme concern over the current situation, notes its critical nature and features a number of concrete proposals.”
"It contains a detailed description of the critical situation that developed against the backdrop of Ukraine’s growing debt for gas being supplied to it, as well as possible consequences for gas transit to Europe," said Peskov, adding that Putin has also called on European leaders to help in stabilizing Ukraine’s economy, as its debt to the Russian state-owned gas supplier, Gazprom, is currently around US$2.2 billion.
Russia unilaterally annexed the Crimea peninsula from Ukraine after the region held a referendum, March 16, voting in favor of unification with the Federation.
Council of Europe suspends Russia over Crimea
The Council of Europe has suspended Russia’s voting rights until the end of 2014 over the annexation of Crimea.
The council, which is Europe’s leading human rights body, backed a resolution on Thursday in Strasbourg by 145 votes to 21, withdrawing Russia’s 18-member delegation’s voting rights.
Declaring Russia’s annexation of Crimea as a ‘’clear contradiction with the Statute of the Council of Europe,’’ the council also terminated Russia’s right to participate in election observation.
Russian delegates have threatened to pull out completely from the council, whose assembly has declared the annexation of Crimea ‘’a grave violation of international law".
The Council of Europe consists of 47 nations and oversees the European Court of Human Rights.
Russia has been a member of the council since 1996. The body suspended Russia’s voting rights between April 2000 and January 2001 over the crisis in Chechnya.
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