Ukrainian company, Naftogaz, has refused to pay Gazprom for gas delivered to the separatist-controlled territories of Donetsk and Luhansk.
On the 18th of May, Naftogaz reported that the Russian gas company had demanded a payment of $670 million for gas supplied to the so-called Donetsk People's Republic (DPR) and the Luhansk People's Republic (LPR) from February 2015 to April 2016.
The report also stated that Naftogaz had not purchased gas from Gazprom since November 2015. Before that, it had only imported gas for territories under Kiev’s control. Naftogaz claims that all purchased gas was paid for and any disputes will have to be resolved through arbitration. According to a contract between the two companies, Naftogaz does not receive gas from Gazprom at the Prokhorovka and Platovo gas measuring stations. Any gas provided there will not be paid for by Naftogaz.
On the 18th of February, Naftogaz stopped delivering fuel to the military zone in eastern Ukraine. The head of the company, Andrey Kobolev, stated that Naftogaz did not apply for gas to be delivered to areas controlled by pro-Russian separatists. Therefore, it will not pay for any Gazprom invoices related to gas being supplied to these regions.
During an interview with RBC, the Deputy Chairman of Gazprom, Alexander Medvedev, said that since the “DPR and LPR are part of Ukraine,” the bill for gas supplied to these territories “should be paid by the contract holder”.