Ukraine will suspend payments for the electricity generated in the anti-terrorist operation (ATO) zone and payments will resume only if the electricity is supplied to Ukrainian households rather than to terrorists, Ukrainian Prime Minister Arseniy Yatseniuk said.

"I've ordered to suspend all financial transfers in the energy sector until it has been figured out what we pay for – for the electricity that is supplied to terrorists or for the electricity that is supplied to the Ukrainian territory with Ukrainian citizens," he said while opening a cabinet meeting in Kyiv on Wednesday.

Yatseniuk instructed the National Commission of Ukraine for Energy, Housing and Utilities Services Regulation (NCER) to set a clear-cut model of payment distribution. "I demand that the NCER and the Energy and Coal Industry Ministry should immediately set a clear-cut model: only the electricity supplied to Ukrainian government-controlled territory should be paid," he said.

Yatseniuk also gave instructions on making public the general statistics about the sums of money spent by Ukraine on shipments of electricity and natural gas to the ATO zone.

The Finance Ministry should earmark funds to pay compensation to NJSC Naftogaz Ukrainy and Energomarket for unpaid shipments to the ATO zone when the ministry finalizes the national budget, Yatseniuk said.