Ukraine halts gas imports from Russia

As of July 1, Ukraine’s Naftogaz is halting gas imports from Russia’s Gazprom.

The Ukrainian state company made the announcement on Tuesday after negotiations in Vienna on the supply of Russian gas failed to reach an agreement.

Naftogaz said gas imports from Russia would be suspended until the two sides reached an agreement. Ukraine has sought a tripartite supply accord with Russia and the EU to ensure stable flows through the winter.

Gazprom reduced its gas discount for Ukraine by 60 percent for the third quarter of 2015.

The Russian company had earlier announced it would cease the transport of gas through Ukraine to Europe in 2019, but reports on Friday said it had backtracked on the decision.

Russia has looked south to Turkey for a supply route bypassing Ukraine, but plans for the Turkish Stream pipeline across the Black Sea and northern Turkey have fallen into uncertainty as Ankara and Moscow have been unable to agree on a discount on gas sold to Turkey.

Turkish state pipeline company Botas said it could take Gazprom to international arbitration if a deal was not reached by Monday. As of Wednesday morning, the status of the deal was unclear.

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