Ukraine, Gazprom hold last-ditch talks to avoid gas cutoff

By RIA Novosti

Moscow : Ukrainian and Russian energy companies will hold talks on Monday aimed at resolving their latest gas debt row that has prompted Gazprom to threaten a supply cutoff on February 12.


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The Russian gas monopoly said on Friday it would halt natural gas supplies to the ex-Soviet country if it fails to pay its outstanding bill, currently at $1.5 billion and rising.

Ukraine’s national oil and gas company Naftogaz denied it has any debts to Russia, and Prime Minister Yulia Tymoshenko blamed an intermediary firm supplying gas for the debt.

President Viktor Yushchenko said earlier Russia’s demands were a response to Kiev’s plans to raise transit fees and remove intermediaries in gas deals.

About 80% of gas Russia supplies to Europe is transited via Ukraine. Russia briefly cut off supplies to Ukraine in early 2006, affecting Europe-bound exports.

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