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Kiev eyes Naftogaz bailout

KIEV, Ukraine, March 11 (UPI) -- Ukrainian lawmakers Wednesday announced preparations to provide ways to boost the solvency of state energy company Naftogaz, officials said.

Ukrainian Prime Minister Yulia Tymoshenko said lawmakers moved on a financial package for the energy company as the Ukrainian economy limps along in the global recession.

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"We are ready to provide the cabinet with the real, balanced financial plan of Naftogaz Ukrainy," she said in statements published by Interfax-Ukraine.

State security officials raided the Kiev offices of Naftogaz last week over allegations the company had taken illegal transfers of natural gas.

Russian Prime Minister Vladimir Putin said the raids discredited Ukraine as a transit country, RIA Novosti reports.

"Clearly, this is discrediting the country and is making us think about alternative routes for gas deliveries to Europe," he said.

A January row between Moscow and Kiev over debts and contracts disrupted regional gas supplies for weeks. Gazprom, the Russian energy monopoly, later accused Ukraine of stealing natural gas meant for Europe.

Naftogaz had warned of a renewed gas crisis last week as regional utility companies struggled with their debt obligations.

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