Russia turns off gas taps to Ukraine over £1.1bn debt

Russia was reported to have switched off its gas supply to Ukraine today after last-minute talks to resolve unpaid bills failed.

“Gas supplies to Ukraine have been reduced to zero,” Ukrainian energy minister Yuri Prodan said.

Russian state-owned firm Gazprom said that as Kiev had not paid $1.95 billion (£1.15 billion) by today’s 7am deadline, there were no legal grounds to supply it with gas. Negotiations had continued into the early hours.

Moscow says it is owed $4.5 billion (£2.65 billion) in total. But Ukraine’s government claims Russia is playing politics by fixing prices beyond its reach, and offering a discount if it pledges obedience to the Kremlin.

Kiev accuses Moscow of fomenting unrest in Ukraine’s eastern cities, where state forces are fighting pro-Russian insurgents. Russia denies this. The move to cut gas is also seen as a strike at Russia’s international critics — as the pipe feeding Ukraine pumps to western Europe as well.