Russia has cut off the gas. After previously warning Ukraine that Russian gas does not come free, the turmoiled country has been officially cut off. In the midst of continued fighting in eastern Ukraine, neither side was able to come to a compromise on gas prices or the outstanding balance that Russia is owed.

According to the Associated Press, Gazprom spokesman Sergei Kupriyanov said “Gazprom supplies to Ukraine only the amount that has been paid for, and the amount that has been paid for is zero.” In addition he urged that the flow of gas to Europe should not be expected to be disrupted immediately. The company has several gas pipes that run through Ukraine supplying large quantities of oil to Europe.

Naftogaz Chief Executive Andrey Kobolev confirmed that Ukraine has been cut off from Russian gas, but the country will not run into any shortage problems until December. Gazprom has notified the European market that they may experience a gas shortage, but that Ukraine still has an obligation to move gas through its pipes for sale in Europe. The AP cited Analyst Tim Ash at Standard Bank PLC as explaining that Ukraine can still theoretically take all the gas it wants, as pipelines traveling to Europe are intermingled with Ukrainian gas pipes.

The gas cut off is complicated further by the continued tension between Ukraine and Russia, who recently annexed Crimea. Russia has also been blamed for quietly supporting rebels in other eastern regions in turmoil. Just this past Saturday, Russian-separatists shot down a Ukrainian troop transport killing all 49 people on board.

Before the regional strife began, Gazprom had offered Ukraine a reduced price of $268.50 per thousand cubic meters. They subsequently raised the price back up to $385 per thousand cubic meters once Viktor Yanukovych was removed from his presidency. Now the company accuses Kiev of owing $4.45 billion for unpaid gas from this year as well as the last.

The gas supplier told Kiev that they wanted $1.9 billion paid by 9 a.m. Kiev time this monday. Once the deadline passed Gazprom declared that it would require upfront payment for all gas purchased from here on out. Furthermore, they will be suing Naftogaz for $4.5 billion in international courts. Gazprom argues that they are owed approximately $6 billion from sales dating back to 2010. The European Commission has stated that Ukraine agreed to pay $1 billion now, and more in the future. Russia has since rejected that deal.

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