Gazprom takes steps to mitigate possible Western sanctions

Western sanctions haven’t targeted Russia’s gas champion – yet. But other forces are bearing down on the company

During talks in Warsaw between the EU, Russia and Ukraine on 2 May, Gazprom’s decision to raise the price that Kiev pays for its gas to $485 per 1,000 cubic metres (’000 cm) from $268.50/’000 cm, Russian energy minister Alexander Novak said: “If we don’t receive pre-payment for June by 31 May, then it is possible Gazprom will reduce gas supplies to Ukraine.”   Gazprom claims that by the end of May Ukraine will owe it almost $3.5 billion – an amount Russian President Vladimir Putin said 17 April must be paid in full within weeks. “Gazprom is set to introduce prepayment for gas to Ukraine. This means that the gas supplies to Ukraine could theoretically be stopped in June,” says Dmitry Loukash