But after the court decision, Gazprom did not restart gas supplies to Ukraine as expected on Thursday, forcing Kiev to take emergency measures to make up for the shortfall and warn that transit flows to Europe were at risk.
The crisis comes a day after Russian President Vladimir Putin gave an annual state of the nation speech where he showcased a raft of new space-age weapons created to negate USA defence capabilities, threatening a new Cold War.
The head of Gazprom, Aleksei Miller, stated that the company was terminating all contracts with Ukraine immediately.
However, Gazprom does not agree with the decision of the Stockholm Arbitration to pay compensation to Naftogaz.
"Earlier, the same tribunal agreed with Naftogaz's reasoning that the fall in gas demand and Naftogaz's failure to fulfil its gas offtake commitments had been caused by a sharp decline in the Ukrainian economy. In such a situation, the continuation of contracts is economically inexpedient and unprofitable for Gazprom", Miller said.More news: Tiger Woods: 'I'm right where I can win a golf tournament'
Without the Gazprom gas deliveries that had to begin on March 1, Ukraine now has a gas deficit of up to 20 million cubic meters per day, Ukrainian Energy Minister Ihor Nasalyk told Parliament on Friday.
According to Medvedev, Gazprom returned funds to pay for gas supplies to Naftogaz in March 2018 due to a previously unannounced contractual agreement. It has already been forced to reduce supplies to thermal power stations in the country in the midst of a cold snap sweeping Europe that has been dubbed a "Siberian winter" in the UK.
It said it was again ready to broker talks between Russia and Ukraine to resolve disputes potentially impacting Russian gas flows to the European Union, as it has several times already. He lambasted the decision, saying that the contract with Ukraine was no longer commercially viable and should be cancelled.
In comments on the phone talk between Russian Energy Minister Alexander Novak and European Commission Vice President Maros Sefcovic, the official said, "Minister Novak assured [Sefcovic] that no threat exists to supplies of Russian gas Russia to Europe".
On March 1 in "Gazprom" reported that "Naftogaz of Ukraine" has made an advance payment for the resumption of Russian gas supplies since March.