Russia cuts off gas supplies to Ukraine  | A gas worker from Ukraine's state gas firm Naftogaz adjusts valves at the Bobrovnytska station in the village of Mryn. (Xinhua/AFP File Photo) |
MOSCOW, Jan. 1 (Xinhua) -- Russia's state gas monopoly Gazprom cut all natural gas supplies to Ukraine on Thursday morning after talks broke down over payments for past shipments and a new energy price contract for 2009, a company spokesman said. "Gas supplies have been completely cut as of 10:00 a.m. (0700 GMT) today," spokesman Sergei Kupriyanov said at a press conference. Gas deliveries to Ukraine were reduced by 110 million cubic meters per day, which means supplies to Ukraine were fully cut off, Kupriyanov said. However, the spokesman said Gazprom will continue to supply European consumers in full. "Export deliveries to Europe have been increased to 326 million cubic meters per day," he said. Kupriyanov urged fresh talks with Ukraine on a new gas supply contract. "We call for a continuation of negotiations... The Russian side is ready to sign an agreement at any time," he said Alexei Miller, the Gazprom CEO, said Wednesday that all gas supplies to Ukraine would be switched off at 10:00 a.m. Moscow time Jan. 1 after talks failed on the repayment of Ukraine's debts and a new contract for supplies in 2009. Gazprom said Ukraine owes over 2 billion U.S. dollars for gas it imported. Ukraine said it has transferred 1.5 billion U.S. dollars to an account to cover the debt but Miller said Gazprom's accounts do not show the payment. Gazprom had insisted that Ukraine pay 418 dollars per 1,000 cubic meters of gas next year, more than double what it paid in 2008. The Russian energy giant on Wednesday offered to charge Ukraine a reduced price of 250 dollars, which Ukrainian officials said was still too high. Early Thursday, Ukraine said in a statement that it was prepared to pay 201 dollars per 1,000 cubic meters and wants to raise gas transit fees. Ukraine sits on the main transit route for Russian gas exports to Europe, accounting for 80 percent of the continent's gas supply from Russia. In 2006, a dispute over gas prices between Kiev and Moscow sent jitters among European customers after Gazprom cut all gas supplies to Ukraine.
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