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Gazprom to brief Europe on Ukrainian debt

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Published: Dec. 8, 2008 at 8:29 PM
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MOSCOW, Dec. 8 (UPI) -- Officials with Russian energy giant Gazprom will brief the European Commission on a row over gas debts with Ukraine that could spill over to European markets.

Gazprom says Kiev owes around $2.4 billion for natural gas from November, complaining the Ukrainian government has made little effort to settle its debt.

Gazprom Deputy Chief Executive Alexander Medvedev told the Financial Times negotiations were "far away" from settled, adding Ukraine should not be permitted to "steal the gas" from Russia.

Officials with Gazprom said they hoped Brussels may be able to put pressure on the situation in an effort to avoid gas disruptions to Europe. Around 80 percent of the Russian natural gas bound for Europe travels through Ukraine. A similar row in 2006 prompted Russia to cut Ukraine off from its natural gas, causing similar disruptions throughout Europe.

Ukraine said it would move aggressively to prevent any supply disruptions to Europe, and Medvedev said he hoped for an agreement before year's end.

Russian President Dmitry Medvedev said he favored court pressure to force Ukraine to settle its debt obligation, though Prime Minister Vladimir Putin said his country had made a "very clear statement" that it would "not tolerate this situation."

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