Ukraine Says 'Not Expedient' to Pay $7Bn Gas Bill

Ukrainian Deputy Prime Minister Yuri Boiko has been in Moscow to discuss bilateral issues with Russian gas giant Gazprom, the company said.

Boiko met Gazprom chairman Alexei Miller and "the parties discussed issues of mutual interest," it said. Boiko and Miller have met several times in recent months as the contentious issue of prices and contracts for gas between the two hits its seasonal rough spot.

The company did not mention the take-or-pay contract that covers Gazprom's natural gas deliveries to Ukraine, nor the €5.21 billion ($7bn) bill for unused gas forwarded to Ukraine recently. 

The BBC quoted energy minister Eduard Stavitsky saying there were "no grounds" for the bill. The $7 billion fee is equal to around 4% of Ukraine's gross domestic product.

"We have replied that we do not deem it expedient to honor the $7 billion bill, that is, to pay it because we have no reason to do so," he said.

Europe is searching for ways to break the Russian deadlock on energy. The vast majority of Russian natural gas bound for the eurozone is shipped through Soviet-era pipelines in Ukraine.