MOSCOW
Ukraine's refusal of Russia's gas deal offer creates unease between the two countries with Russian PM Dimitry Medvedev claiming on Monday that Ukraine wants to create an artificial gas crisis.
Medvedev says that Russia's offer, which had better terms that the previous agreement during Ukraine's previous presidential period, was turned down. Russian energy giant, Gazprom earlier on Monday announced that Ukraine will have to pay in advance for the gas it imports from Russia, as the deadline for an agreement with the EU brokered talks expired without a concrete solution.
Gazprom filed a lawsuit in a Stockholm arbitration court Monday against Ukraine's state energy company, Naftogaz over its 4.5 billion dollar gas bill. Following this announcement, Russia halted natural gas supplies to Ukraine, Yuri Prodan, Ukraine’s energy minister said.
Voicing his support for Gazprom’s lawsuit against Naftogaz, Medvedev said Russia is ready continue the ‘gas talks,’ if Ukraine pays its current debt.
Ukraine’s Prime Minister Arseniy Yatsenyuk said Monday that new projects, involving U.S. and European companies, towards the modernization of Ukraine’s pipeline system would be prepared soon.
Russia provides one third of Europe’s natural gas, half of which is exported through Ukraine.
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