Russian firm Gazprom is stopping gas supplies to Ukraine after talks on a new price broke down in the small hours of Monday (16 June).

It said in a statement published at 10am Moscow time – its deadline for Ukraine to pay almost $2 billion of old debt – that it is switching to “prepayment for gas supplies … Starting today, the Ukrainian company will only get the Russian gas it has paid for”.

It added that Ukraine has not made prepayments for June.

The situation does not mean immediate shortages for Ukraine or for EU countries which get Russian gas via Ukraine because Ukraine has large volumes in its storage vaults and demand is low in summer.