MOSCOW, Aug. 31 – Russia and Ukraine on Wednesday moved a step closer to a clash over natural gas imports after Gazprom had threatened to respond with sanctions should Kiev go ahead with plans to reduce gas imports.

Alexei Miller, the CEO of Gazprom, issued a statement in reaction to comments from Ukrainian Energy Minister Yuriy Boyko, who said Ukraine had planned to start cutting gas imports as soon as 2012.

Ukraine officially requested Russia reduce supplies of gas to 27 billion cubic meters of gas in 2012, down from 40 Bcm in 2011, Boyko said.

But Miller, citing a clause in the 10-year gas contract signed in January 2009, said Ukraine will face tough penalties if it reduces gas imports.

“Gazprom can deliver 27 Bcm, or 26 Bcm, or 29 Bcm to Ukraine in 2012. It can even stop supplies at all if this is what Ukraine wants,” Miller said in the statement.

“But this is not the issue. The issue is that Naftogaz Ukrayiny will be paying for supplies of at least 33 Bcm/year. These are ‘take or pay’ conditions stipulated in the contract,” Miller said. “They will be in effect this year, and during the entire life of the contact.”

The contract, negotiated by then Prime Minister Yulia Tymoshenko and her Russian counterpart Vladimir Putin in January 2009, calls for Ukraine importing at least 52 Bcm annually through 2019.

The contract allows Ukraine to reduce the imports by 20% to 41 Bcm/year without any penalty. Ukraine can also ask for permission from Gazprom to lower imports to 33 Bcm/year.

But any lower imports than that would automatically kick in a ‘take or pay’ clause that punishes Ukraine with a steep penalty of up to 300% of the cost of gas that Ukraine had failed to import.

Tymoshenko is currently on trial in Kiev for negotiating the controversial contract, and is charged with exceeding her authority that had led to the gas deal.

Tymoshenko, who was arrested August 5 on contempt of court charges, said the trial is politically motivated.

Ukraine has been unsuccessfully trying to renegotiate lower gas prices during the past 18 months, but Moscow has refused to cooperate, Ukrainian officials said.

Miller said earlier this month that Ukraine may qualify for lower gas prices if it surrenders its natural gas pipelines to Gazprom. Ukraine rejected this proposal.

Now, Ukraine wants to cut Russian natural gas imports by 66% within the next five years, replacing it with domestically extracted resources, like shale gas and coal, Prime Minister Mykola Azarov said Tuesday.

The comment underscores Ukraine’s worsening relations with Russia as Moscow has repeatedly refused to re-negotiate a controversial 10-year gas contract signed in January 2009. (tl/ez)