Ukraine will suspend payment for electricity produced in the zone of the government’s anti-terrorist operations (ATO), and it will resume payment only if that electricity is supplied to Ukrainian citizens and not terrorists, Prime Minister Arsenii Yatseniuk said on Wednesday, the Interfax Ukraine news agency reports.

"I have ordered suspension of all financial transfers in the energy sector until we understand what we are paying for: electricity that is supplied to terrorists or electricity that is supplied to citizens," the prime minister said while opening a meeting of the Cabinet of Ministers in Kiev on Wednesday.

The prime minister instructed the national energy regulation commission to develop a clear algorithm for distribution of funds. "Payment is made only for the electricity that is supplied to the territories controlled by the Ukrainian government," said Yatseniuk.