After the Revolution

Toss on another blanket; the gas fights are back.

State-owned Russian gas company Gazprom has cut gas supplies to Ukraine in half over the past two days.

Gazprom says Ukraine has not paid $1.5 billion in gas bills.

Ukraine’s gas company, Naftogaz, says Ukraine has made most of the payments but can’t complete the rest because Russia and Ukraine’s intermediary gas trading company has yet to draw up the proper contracts.

On top of that, Ukraine’s gas company has accused Russia’s gas company of failing to pay some of its own bills.

According to Ukraine’s first deputy prime minister:

“Since December Russia’s Gazprom has not paid Naftogaz a kopeck for the transit of Russian gas.” 

In turn, the Russian company has accused the Ukrainian company of not drawing up the proper invoices requesting payment. 

Gazprom also cut gas supplies to Ukraine in 2006. At that point gas supplies to other European countries piped through Ukraine were also disrupted.

Ukraine has said its reserves will hold up for two weeks in mild weather. But after that, Gazprom’s actions are going to cause ripples throughout the West, according to an article posted on the Kiev Ukraine News Blog.

Most of the natural gas piped to Europe from Gazprom goes through Ukraine.

Moral of the story? Always ask for a receipt.