In addition to a £250m UK City Deal signed earlier in the day, the PM has set out an action plan of further measures to help build a bridge to the future for the industry, which is vital for our energy security and has been at the heart of the UK economy for decades, generating jobs, skills and growth.

British wholesale gas prices have fallen over 40 percent in the past year, as mild winter temperatures softened demand amid a sell-off in crude oil markets to which seasonal gas contracts are indirectly linked, and pressure has been mounting on power companies to lower retail prices for households.

Ukraine, once one of Russia’s biggest foreign gas buyers, had a debt of more than $29 billion before Tuesday’s bill, according to Gazprom. Naftogaz has demanded almost $26 billion from Gazprom in Stockholm arbitration, claiming it overpaid for supplies and was paid too little for transit, with a court ruling not expected before the middle of the year.

“While the UK offshore oil and gas industry is having to adapt to the low oil price and driving greater efficiencies throughout its operations the fact is that the value of our product has more than halved," she said. "Times are really tough for this industry and for the people working in it. We will continue to see job losses as we move into 2016 and we must be thoughtful and supportive of our colleagues and their families who are being made redundant or who are at risk of being made redundant."

In July 2014, at the height of the Crimean Crisis, Ukraine imported gas from Western Europe, and particularly from Germany for $370 per 1,000 cubic metres. Earlier in the 2014, the country had paid $273 per million cubic metres for gas from Russia.

Low oil prices have hurt manufacturers that supply and service the sector

Britain's oil and gas sector has lost over 5,000 jobs since late 2014 as a slump in oil prices has severely squeezed oil companies' budgets and led to project cancellations.

Azerbaijan’s commercial gas production increased by 6.2 percent in 10 month of 2015, compared to the same period in last year, the State Statistical Committee of Azerbaijan reported on November 17.

The U.K. government will make keeping the lights on the top priority with natural gas and nuclear power playing a central role in that goal, Energy and Climate Change Secretary Amber Rudd is expected to say in a major speech later Wednesday setting out a new energy policy for the country.

Russia’s President Vladimir Putin met with Emir of Kuwait Sabah Al-Ahmad Al-Jaber Al-Sabah this week to discuss opportunities for cooperation in the fields of energy and diplomacy. The two countries also signed a memorandum for military technical cooperation.