Ukraine told to pay up - or else

Russia's gas export monopoly Gazprom today threatened to halt gas supplies to Ukraine from 11 February unless Kiev settles its $1.5 billion gas debt.

Gazprom spokesman Sergei Kupriyanov made the warning on Russia's Vesti 24 television channel today.

Gazprom supplies a quarter of Europe's gas needs via Ukraine and Belarus. Previous pricing disputes have led to cuts in deliveries to Europe, but the European Union said Gazprom had given assurances this time.

"If the Ukrainian side does not settle the problem on Monday, Gazprom will have to stop supplies of Russian gas to Ukraine," Gazprom spokesman Kupriyanov said.

Meanwhile, Ukrainian Prime Minister Yulia Tymoshenko said there would be no problems with gas supplies to the country, according to news agency Interfax.

"All these problems will be solved. There will be no problems with natural gas supplies to Ukraine," Interfax cited her saying during a visit to southern Ukraine.

An increasingly assertive Russia has been involved in repeated disputes with the countries through which it ships its gas to Europe and which get Russian gas at subsidised prices.

A new Ukraine government has recently sought to revise terms of its gas agreement. Ukraine's pro-Western President Viktor Yushchenko is due to visit Moscow next Tuesday.

The disputes raise concerns in Europe over supplies, particularly in the middle of winter, but the European Commission said Gazprom had given assurances that its dispute with Ukraine would not affect supplies to the European Union.

About 80% of Russia's gas exports to Europe go through Ukraine.

"Gazprom has given assurances that gas supplies to the European Union will not be interrupted," EU Energy Commissioner Andris Piebalgs said in a statement.

Russian President Vladimir Putin has branded as parasites the energy transit states that have benefited from shipping fees and cheap Russian energy and said Russia should stop subsidising them.

But analysts said Russia also wants to ensure it does not harm its reputation as a reliable gas supplier to Europe.

Russia imposed the first in a series of steep increases in the price of gas for Ukraine in early 2006. A price dispute then briefly halted supplies and disrupted flows to Gazprom's European customers.

New Ukrainian Prime Minister Yulia Tymoshenko said last month she hoped to negotiate a "just" increase in the tariffs that Ukraine charges for the transit of Russian gas across its territory.

Gazprom's Kupriyanov said Russia had increased gas supplies to Turkey, Greece and Ukraine since the beginning of the year after the countries faced lower deliveries from other suppliers.

"All our partners follow payments schedules and it is only with Ukraine that a paradoxical situation has emerged where it gets the gas it needs, but does not pay for it," he said.