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Gazprom sets 16 June 2014 as deadline for Ukraine gas pre-payment

As part of current negotiations between Russia, Ukraine and the European Union on terms of gas supplies to Ukraine, Gazprom has moved to 16 June 2014 the introduction of pre-payment for gas supplies. Gazprom has threatened again to interrupt supplies if Ukraine fails to pay off billions of dollars in debt by Monday 16 June, at 6:00 am. An earlier Russian deadline to Ukraine to pay some of its debts passed without Gazprom cutting off supply. Negotiations just failed on the price of gas supply, after Russia doubled to price to US$485/1000 m3 in February 2014 (price much higher than the European average). Ukraine wanted to stick to the price of US$268.5/1,000 m3 that Gazprom had offered earlier, but agreed to pay the alternative price of US$326/1,000 m3 proposed by the European Union. Russia offered to remove an export duty of US$100/1,000 m3, reducing the price to US$385/1,000 m3, which was refused by Kiev. Ukraine is now preparing for the cut off of gas supplies.