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Gazprom cuts Ukraine gas supply Gazprom cuts Ukraine gas supply
(about 3 hours later)
Gazprom, Russia's gas monopoly, has cut supplies to Ukraine by 25% after talks between the two sides ended in failure.Gazprom, Russia's gas monopoly, has cut supplies to Ukraine by 25% after talks between the two sides ended in failure.
State-owned Gazprom claims it is owed $1.5bn (£770m) in arrears, and that efforts to get Ukraine to pay off the debts had "reached a dead end".State-owned Gazprom claims it is owed $1.5bn (£770m) in arrears, and that efforts to get Ukraine to pay off the debts had "reached a dead end".
A previous row between the two sides saw Russia cut gas to Ukraine in 2006, also hitting exports to Western Europe.A previous row between the two sides saw Russia cut gas to Ukraine in 2006, also hitting exports to Western Europe.
Gazprom reassured European consumers that their gas supply would not be affected by the current problems.Gazprom reassured European consumers that their gas supply would not be affected by the current problems.
"Gas deliveries to European consumers will go on in full amount," said Gazprom spokesman Sergei Kupriyanov.
"Gazprom is ready to continue talks with Ukrainian officials," he said.
Earlier, the European Commission said it had been assured by Gazprom that supplies to the European Union will not be impacted.Earlier, the European Commission said it had been assured by Gazprom that supplies to the European Union will not be impacted.
Stalemate
Last month, Russian President Vladimir Putin and Ukraine's Viktor Yushchenko reached an outline deal, but the details could not be agreed.Last month, Russian President Vladimir Putin and Ukraine's Viktor Yushchenko reached an outline deal, but the details could not be agreed.
On Friday, Gazprom spokesman Sergei Kupriyanov said in a statement that talks with Ukraine had failed to produce results. Ukraine's deputy prime minister said the money owed had already been transferred and that documents to confirm this had been sent to Gazprom.
Ukraine's deputy prime minister said the money had already been transferred and that documents to confirm this had been sent to Gazprom. But Gazprom's Mr Kupriyanov maintained that the problem had not been resolved.
"Gazprom is a reliable supplier of energy resources, but we cannot and should not deliver gas without payment," he said in a statement.
The gas cut came hours after Gazprom chairman Dmitry Medvedev won the Russian presidential election with the support of President Vladimir Putin.
The Kremlin has tightened its grip on Russia's oil and gas supplies and used this control to help create an economic boom in the country.