Gazprom threatens to halt gas to Ukraine

KIEV, Ukraine, Feb. 9 (UPI) -- Ukraine's president says Gazprom's threat to halt the flow of natural gas to his country is retaliation for his plan to hike transit taxes on the pipeline.

Gazprom, the Russian state energy giant, said Friday it would halt the gas flow Tuesday morning unless Ukraine settles its outstanding gas debt by close of business Monday, RIA Novosti reported.

Naftogaz, Ukraine's state-run energy company, said it has no outstanding debt and blamed the misunderstanding on RosUkrEnergo, the intermediary company co-owned by Gazprom.

Ukrainian President Viktor Yushchenko said Gazprom is reacting to his plan to raise transit taxes and to ban intermediaries, such as RosUkrEnergo, from energy deals, RIA Novosti reported.

Naftogaz officials vowed to bypass RosUkrEnergo officials and speak directly with those in charge at Gazprom to resolve the dispute.