June 16, 2014 By Citizen M

RA’s Daily Russia News Blast – June 16, 2014

TODAY: Ukraine gas cut-off deadline arrives as pricing talks end without resolution; Kiev officials prepare for supplies to end; Russia accuses Ukraine of having third-party backing; Gazprom to sell Lithuanian assets following fine; violence worsens in eastern Ukraine, 49 killed in Luhansk; Poroshenko urged to sack aide who called Putin ‘dickhead’; Navalny sued; citizens want anti-gay lawmaker’s head examined.

6am GMT today was the natural gas cut-off deadline imposed upon Ukraine by Gazprom, which it had promised to honour if no debts had been paid and no agreement reached.  And indeed, after a weekend of talks including executives from Gazprom and Naftogaz and European energy commissioner Guenther Oettinger, Russia and Ukraine say they have failed to resolve their ongoing gas dispute; Gazprom said it would not extend the deadline any further, and that there would be no further attempts to negotiate: ‘We reached no agreement. The chances that we meet again are slim.’  All sides are making accusations of blame: prior to these last rounds of talks, Ukrainian Prime Minister Arseniy Yatsenyuk had warned officials to prepare for the gas supply to be cut off, accusing Russia of deliberately avoiding a resolution; Foreign Minister Sergei Lavrov accused Ukraine’s ‘arrogant and uncompromising position’ at the talks of having backing from ‘a third power; and the WSJ reports that Oettinger’s attempt to forge a compromise through a system of seasonal pricing was turned down by Russia.  The stalemate is somewhat of a diplomatic victory for Ukraine, says this piece, at least insofar as it has held its ground.  Gazprom has responded to a fine from the Lithuanian government by selling its stakes in two Lithuanian gas distribution companies.