Ukraine Not Buying Russian Gas Anymore, Naftogaz Says

Ukraine's state-owned utility Naftogaz has said it will stop purchasing gas from Russian energy giant Gazprom as of July 1, until a pricing dispute has been settled.

Kiev maintains the price of USD 247 per 1000 cubic meters currently proposed by the Russian concern is not acceptable, and that the rate should be slightly above USD 200.

Initially, Russia had stuck to USD 287/1000 cubic meters, but agreed to a USD 40 discount in the end.

Ukraine put forward its new pricing proposal at a Tuesday meeting of Russia, Ukraine, and the EU Commission held in Vienna, Russian business daily RBC reports.

Russian Energy Minister Alexander Novak then described the country's intention to stop buying gas as "a decision of political nature".

Ukraine, however, made clear it won't disrupt transit to Europe done via its territory.

It believes that, in order for supplies to continue, an agreement on the "bones of contention" must be in place at least for the period until the end of Q1, 2016.

Russia and Ukraine have been caught in a gas pricing dispute since the early onset of the crisis in Eastern Ukraine in 2014, though there have also been other instances over the past decade.

In a separate development, the Ukrainian Energy Ministry said it was suspending electricity supplies to the Crimean peninsula as of July 1, but did not explain if the measure is imposed on a temporary basis.