Russia warns Ukraine against siphoning off Europe-bound gas

Russian natural gas giant Gazprom said on Sunday it may take Ukraine to an international court if the former Soviet republic uses gas intended for European clients from a pipeline running through its territory without permission.

“Eighty percent of our gas transits through Ukraine, which was the motive behind our Ukrainian colleagues’ decision to start to blackmail us … But we are ready to go to the Swedish court in the event of Ukraine’s unsanctioned use of gas,” deputy chairman Alexander Medvedev told Channel One television, referring to the Stockholm International Court of Arbitration, which acts as a neutral body for resolving East-West trade disputes.
Ukraine buys Russian gas at a discounted price of 50 US dollars per 1,000 cubic meters, but Russia has asked Ukraine to pay more than quadruple the current price and offered cash payments for gas transit.

Ukraine said it is willing to switch to market prices for Russian gas but insisted it needs a transitional period to adjust its economy.

Xinhua