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Russia, Ukraine trade blame on gas dispute

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Published: Jan. 7, 2009 at 8:18 AM
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MOSCOW, Jan. 7 (UPI) -- Russia said the natural gas supply that runs through Ukraine to Western Europe was completely shut down while a dispute over a gas bill continues.

Russia's gas giant Gazprom contends that Ukraine owes more than $600 million on its bill mostly for late fees and that Ukraine's energy company Naftogaz had been siphoning gas intended for Europe out of the pipeline.

Russia and Ukraine blamed each other for the shut down, CNN reported Wednesday.

Naftogaz said Russia cut off the supply line. But, Gazprom Deputy Chief Executive Alexander Medvedev told CNN "it's absolutely vice-versa."

Gazprom "lost physical possibility to deliver gas to Europe … because (the) Ukrainians shut down all the export pipelines," he sad.

Nine countries have reported supply disruptions.

Officials said both sides have scheduled a meeting Thursday to discuss the dispute, while freezing temperatures hover over the continent.

"In such cold weather, it's a high risk that water freezing problems could deter the activity of the gas pipeline system, which (might) not be restored in a quick time," Medvedev said.

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