Russia may cut Ukrainian gas, Putin says

Published: Dec. 4, 2008 at 8:20 PM

MOSCOW, Dec. 4 (UPI) -- In a reversal of earlier positions, Russia may cut natural gas exports to Ukraine if Kiev fails to settle its remaining debt, the Russian premier said Thursday.

Russian gas giant Gazprom filed a lawsuit in November at an international court in Stockholm to force Ukraine to settle its $2.4 billion gas debt.

Russian President Dmitry Medvedev said he would use court pressure to persuade Kiev to move on its obligations rather than implement gas cuts. But Thursday Russian Prime Minister Vladimir Putin said his country may resort to supply cuts to increase pressure on Ukraine, RIA Novosti said.

"If our partners do not fulfill agreements, we will have to reduce supplies. What else can we do?" Putin said.

Ukraine had complained Russia was looking to collect payment for gas it had not used, though Russia said it was waiting for Ukraine to settle debts for consumptions from September.

Ukraine transports around 80 percent of Russian natural gas to European markets. A 2006 row over pricing mechanisms resulted in brief supply cuts to Ukraine that spilled over to Europe.

Putin said he would notify European customers of any final decisions.

© 2008 United Press International, Inc. All Rights Reserved.
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