Urgent talks on Ukraine gas row

Viktor Yushchenko is due in Moscow to try to avert Russia cutting gas supplies to his country in a dispute over an unpaid bill. The Ukranian president has just five hours with President Vladimir Putin to settle the row over a demand by Russian gas monopoly Gazprom for Ukraine to pay USD 1.5bn. Urgent talks on Ukraine gas row Russia has threatened to switch off supplies but Kiev disputes the bill. Gazprom, which supplies 25 percent of Europe's gas, said the disagreement would not affect supplies to the rest of Europe. But as most of the company's gas supply to western Europe passes through Ukraine, concerns remain that the row could escalate into a repeat of two years ago. Deep suspicion In January 2006, gas shipments to Europe were disrupted after Russia halted fuel supplies to Ukraine for several days amid a fierce argument over price hikes. Although Gazprom claims the current dispute is purely commercial, fears have been raised that Moscow might be exploiting its energy resources to exert political pressure on its neighbours. The crux of this latest crisis seems to be over how the bill is to be paid. Ukraine's pro-Western Prime Minister Yulia Tymoshenko wants the money paid directly to Gazprom, rather than going through an intermediary company - RosUkrEnergo - which she views with deep suspicion. On Monday, Gazprom and the Ukrainian state energy companies failed to resolve the gas debt dispute during several hours of talks. Gazprom extended its deadline for cutting a quarter of gas supplies to Ukraine until 1500GMT on Tuesday - raising hopes the row could be settled in time. Ukraine's prime minister has suggested that Gazprom's threats were empty. She said Russian First Deputy Prime Minister Sergei Ivanov had informed her supplies would not be cut. Moscow does not like President Yushchenko or his prime minister. Both were leaders of the Orange Revolution three years ago that swept away a pro-Russian government in Ukraine and replaced it with one that looks to the West for support and now wants to join NATO. U.S. state department spokesman Sean McCormack said Washington was monitoring the gas dispute.

Urgent talks on Ukraine gas row

Russia has threatened to switch off supplies but Kiev disputes the bill.

Gazprom, which supplies 25 percent of Europe's gas, said the disagreement would not affect supplies to the rest of Europe.

But as most of the company's gas supply to western Europe passes through Ukraine, concerns remain that the row could escalate into a repeat of two years ago.

Deep suspicion

In January 2006, gas shipments to Europe were disrupted after Russia halted fuel supplies to Ukraine for several days amid a fierce argument over price hikes.

Although Gazprom claims the current dispute is purely commercial, fears have been raised that Moscow might be exploiting its energy resources to exert political pressure on its neighbours.

The crux of this latest crisis seems to be over how the bill is to be paid.

Ukraine's pro-Western Prime Minister Yulia Tymoshenko wants the money paid directly to Gazprom, rather than going through an intermediary company - RosUkrEnergo - which she views with deep suspicion.

On Monday, Gazprom and the Ukrainian state energy companies failed to resolve the gas debt dispute during several hours of talks.

Gazprom extended its deadline for cutting a quarter of gas supplies to Ukraine until 1500GMT on Tuesday - raising hopes the row could be settled in time.

Ukraine's prime minister has suggested that Gazprom's threats were empty.

She said Russian First Deputy Prime Minister Sergei Ivanov had informed her supplies would not be cut.

Moscow does not like President Yushchenko or his prime minister.

Both were leaders of the Orange Revolution three years ago that swept away a pro-Russian government in Ukraine and replaced it with one that looks to the West for support and now wants to join NATO.

U.S. state department spokesman Sean McCormack said Washington was monitoring the gas dispute.