page_title: Russia–Ukraine gas disputes
section_title: Dispute of 2007–2008
hierarchical_section_title: Russia–Ukraine gas disputes / Dispute of 2007–2008
caption_attribution_description: English: THE KREMLIN, MOSCOW. At the meeting of the Russian-Ukrainian Intergovernmental Commission.Русский: МОСКВА, КРЕМЛЬ. На заседании Российско-Украинской межгосударственной комиссии.
context_page_description: The Russia–Ukraine gas disputes refer to a number of disputes between Ukrainian oil and gas company Naftohaz Ukrayiny and Russian gas supplier Gazprom over natural gas supplies, prices, and debts. These disputes have grown beyond simple business disputes into transnational political issues—involving political leaders from several countries—that threaten natural gas supplies in numerous European countries dependent on natural gas imports from Russian suppliers, which are transported through Ukraine. Russia provides approximately a quarter of the natural gas consumed in the European Union; approximately 80% of those exports travel through pipelines across Ukrainian soil prior to arriving in the EU.
  A serious dispute began in March 2005 over the price of natural gas supplied and the cost of transit. During this conflict, Russia claimed Ukraine was not paying for gas, but diverting that which was intended to be exported to the EU from the pipelines. Ukrainian officials at first denied the accusation, but later Naftogaz admitted that because of harsh winter some natural gas intended for other European countries was retained and used for domestic needs.
context_section_description: On 2 October 2007,  Gazprom threatened to cut off gas supplies to Ukraine because of unpaid debt of $1.3 billion.  This dispute appeared to be settled on 8 October 2007. On 5 January 2008, Gazprom warned Ukraine that it would reduce its gas supplies on 11 January if $1.5 billion in gas debts were not paid.  Presidents Putin and Yushchenko announced on 12 February 2008, an agreement on the gas issue. Ukraine would begin paying off its debts for natural gas consumed in November–December 2007 and the price of $179.5 would be preserved in 2008. The presidents also decided to replace RosUkrEnergo and UkrGazEnergo with two new intermediaries, creating them as joint ventures of Gazprom and Naftogaz.
  At the end of February 2008, Gazprom threatened to reduce the supply of natural gas to Ukraine beginning on 3 March 2008, unless the pre-payment for 2008 was paid. The Ukrainian government said it paid for the natural gas which was consumed in 2007, but refused to pay the bill for 2008. A Gazprom spokesman claimed that the bill for 1.9 billion cubic metres (67 billion cubic feet) of gas deliveries to Ukraine valued around $600 million remained unpaid. Ukraine disagreed as that debt accumulated in recent months when Russia used its own gas to make up for a shortfall in less expensive Central Asian gas. On 3 March, Gazprom cut its shipments to Ukraine by 25% and an additional 25% the next day, claiming that the $1.5 billion debt still was not paid, although Ukrainian officials stated it had indeed been paid. Gas supplies were restored on 5 March after Gazprom CEO Alexei Miller and Naftohaz CEO Oleh Dubyna agreed during negotiations by phone on a settlement. On 6 March, the Ukrainian cabinet refused to execute the gas agreements made by presidents Yushchenko and Putin. The Ukrainian cabinet did not want to pay in advance for 2008, and it opposed the creation of a Naftohaz–Gazprom venture that would sell gas in Ukraine. Prime Minister Yulia Tymoshenko stated that Ukraine did not need any additional joint ventures, and as of 1 March 2008, UkrGazEnergo is no longer operating in Ukraine's domestic gas market.
caption: Then President of Russia Vladimir Putin and President of Ukraine Viktor Yushchenko at a meeting of the Russian–Ukrainian Intergovernmental Commission at the Kremlin on 12 February 2008, at which the gas dispute was discussed.
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