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Ukraine will ask a Stockholm court to require Russia to continue natural-gas supplies during arbitration as a June payment deadline looms.

Talks between Moscow and Kiev on the gas price have stalled and can only be resolved in arbitration that may start after May 28, Finance Minister Oleksandr Shlapak said in an interview in Brussels. OAO Gazprom, Russias natural-gas exporter, sent Ukraine a bill yesterday for an estimated $1.7 billion of gas the country may import next month, saying it will cut off supplies if no money is received by June 2.

Well insist both sides must fulfill their obligations in good faith, as a precautionary measure, Shlapak said of the arbitration case Ukraine is filing. We will ship gas to Europe as set out in the transit contract. If you please, deliver gas to Ukraine and dont break the contract. This is how well ask the arbitration court to approach the issue.

Ukraine depends on Russia for about half its gas and carries about 15 percent of the European Unions annual use of the fuel through its pipeline network, and a cutoff could disrupt shipments to the EU.

The situation has reached a dead end from the point of view of negotiations, Shlapak said in the interview late yesterday. He rejected the gas price Russia has demanded since April, saying the increase was politically motivated.

Finance Minister Oleksandr Shlapak said, Well insist both sides must fulfill their obligations in good faith, as a precautionary measure. Close

Finance Minister Oleksandr Shlapak said, Well insist both sides must fulfill their... Read More

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Finance Minister Oleksandr Shlapak said, Well insist both sides must fulfill their obligations in good faith, as a precautionary measure.

Arbitration is necessary as because the government in Kiev refuses to make prepayments at the higher price, while Russia says it will not discuss a lower price until a debt for previous supplies is paid off, Shlapak said.

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Ukraine to Seek Order Ensuring Russian Gas During Arbitration