Russia and Ukraine failed to reach a new agreement on gas prices at talks in Vienna on Tuesday, leading to Ukraine suspending its purchase of Russian gas.
Russian Energy Minister Aleksandr Novak and Ukraine’s Energy and Coal Minister Vladimir Demchishin both admitted to reporters that the negotiations had born no fruit. Demchishin added that there would be a new round of talks in September.
Meanwhile, Ukraine’s energy company, Naftogaz, will stop buying gas from Russia as of Wednesday, July 1.
Despite Kiev’s purchasing freeze, Russia will continue direct supplies of gas to Ukraine’s southeast, Novak said. It has been doing so since February, when Kiev claimed that it could no longer supply gas to the conflict-torn regions due to damaged pipelines. Gazprom insists that Kiev is still responsible for paying for the gas that goes to the southeast.