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Russian energy giant Gazprom has switched to advanced payment mode for gas deliveries to Ukraine's Naftogaz, company officials have announced.
Gazprom has also filed a lawsuit at the Stockholm arbitration court, in an attempt to get back its gas debts.
The decision has been in force since 10:00 Moscow Time (06:00 GMT), a company message cited by ITAR-TASS agency shows.
Gas deliveries to Kiev could be disrupted if Ukraine's Naftogaz does not pay its debts to Russian energy concern Gazprom by Monday morning, June 16.
The money that is to be transferred to the Russian company amounts USD 1.95 B.
Hours before the deadline, a new session of talks that started between Kiev and Moscow over the weekend ended without yielding any results.
Ukraine and Russia failed to hold expected talks on a gas pricing dispute June 15 morning, despite a deadline for Kiev to pay a $1.95 billion debt by June 16 or have its gas supplies cut off.
Ukraineâs Energy Ministry said it hoped the talks, being mediated by the European Unionâs energy commissioner, would resume June 15 but both sides said a time had not been agreed.
Ukraine announced it would agree to pay USD 326 per 1000 cubic meters of gas following a three-way Brussels meeting over the dispute with Russia.
State-owned energy utility Naftogaz's CEO Andrey Kobolev said the price, which was offered by the EU, a mediator in talks between Kiev and Moscow, was acceptable, according to RIA Novosti.
Bulgarian Prime Minister Plamen Oresharski has reiterated he ordered the temporary suspension of South Stream following his statement on Sunday.
Answering to lawmakers' questions Oresharski explained he had launched a procedure to freeze the pipeline without coordinating his actions with the Council of Ministers.
Bulgaria struck a financial agreement with Russia alongside a secret deal on the construction of South Stream, a Reformist Bloc representative said Friday.
Martin Dimitrov's comments come a day after other bloc members alleged that they had gained access to evidence of a "secret deal" with Gazprom on the South Stream project.