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| Russia-Ukraine gas talks collapse | |
| (20 minutes later) | |
| Talks to resolve a gas supply row between Ukraine and Russia have failed, the chief executive of Russian gas giant Gazprom has said. | Talks to resolve a gas supply row between Ukraine and Russia have failed, the chief executive of Russian gas giant Gazprom has said. |
| Alexei Miller said gas supplies to Ukraine would be cut on Thursday but that Russia would do its best to guarantee supplies to Europe. | Alexei Miller said gas supplies to Ukraine would be cut on Thursday but that Russia would do its best to guarantee supplies to Europe. |
| Russian PM Vladimir Putin earlier claimed that Ukraine would block supplies to Europe if no deal was done. | Russian PM Vladimir Putin earlier claimed that Ukraine would block supplies to Europe if no deal was done. |
| Ukraine denies owing money to Gazprom, and says it has guaranteed gas transit. | Ukraine denies owing money to Gazprom, and says it has guaranteed gas transit. |
| Gazprom said it would cut Ukraine's supply from 0700 GMT on Thursday. | Gazprom said it would cut Ukraine's supply from 0700 GMT on Thursday. |
| "The debt to Gazprom for gas supplied earlier was not paid. Despite verbal statements from Kiev, Gazprom did not see any money in its account," said Mr Miller in a live television briefing. | "The debt to Gazprom for gas supplied earlier was not paid. Despite verbal statements from Kiev, Gazprom did not see any money in its account," said Mr Miller in a live television briefing. |
| He blamed Ukraine for the situation and said Gazprom had no legal reason to continue supplying gas to Ukraine. | He blamed Ukraine for the situation and said Gazprom had no legal reason to continue supplying gas to Ukraine. |
| "Starting from 1000 hours [0700 GMT] on 1 January 2009, Gazprom will stop in full, 100%, supplying gas for consumers in Ukraine," he said. | "Starting from 1000 hours [0700 GMT] on 1 January 2009, Gazprom will stop in full, 100%, supplying gas for consumers in Ukraine," he said. |
| A similar row between Gazprom and Ukraine in 2006 led to gas shortages in several EU countries. | A similar row between Gazprom and Ukraine in 2006 led to gas shortages in several EU countries. |
| 'Unconstructive' | |
| Mr Miller said he blamed Ukraine entirely for the situationA spokesman for Ukrainian state energy firm Naftogaz, Valentin Zemlyansky, confirmed that the negotiations were over. | |
| But the company has said that natural gas supplies to European neighbours will remain secure, reported AFP. | |
| "Europe will receive all the gas Russia supplies it with," the agency quoted Bogdan Sokolovsky, the Ukrainian president's representative on energy issues, as saying. | |
| Mr Miller had earlier criticised Ukraine's stance during the negotiations as "unconstructive". | |
| He said the contract to supply gas depended on the full settlement of £2bn in gas bills and late-payment fines levied by Gazprom. | |
| Naftogaz has said it has paid $1.5bn (£1bn) in outstanding bills to RosUkrEnergo - a Switzerland-registered gas trading company which is acting as an intermediary - but not the fines. |