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The Russian state monopoly Gazprom on Thursday halted gas supplies to Ukraine completely at the failure of negotiations on prices for 2009 and the debt of Ukraine, the company reported.

Gazprom spokesman Igor Volobuyev said that the cuts began at 10 am (0700GMT) on Thursday, as planned.


A spokesman for the Ukrainian gas company Naftogaz confirmed the sharp drop of supplies.

There are fears about a supply disruption could lead to a repetition of the European gas crisis of January 2006. Then, a dispute similar between the two countries temporarily halted shipments of gas to much of the continent. Ukraine controls the pipelines through which Russia supplies most of its customers in Europe.


While it cut gas to Ukraine, Gazprom said it has increased the amount of gas shipped by pipelines that serve mainly to Europe, which gets almost one quarter of its gas from Russia.

Russian Prime Minister Vladimir Putin has warned Ukraine not to divert gas to other consumers, saying it could have "very serious consequences" for the country where the fuel flowing to the damaged relations with Europe.


The President Viktor Yushchenko and the Ukrainian prime minister Yulia Tymoshenko issued a statement claiming that would ensure the uninterrupted transit of natural gas to Europe through Ukrainian territory.

Unable to reach an agreement reflects the great political division between Russia and Ukraine.


Gazprom had warned it would interrupt gas supplies unless Ukraine to pay its debt completely 2,100 million dollars and signed an agreement on prices for 2009. But neither of these two conditions are met.

Naftogaz paid $ 1,500 million andalusia RosUkrEnergo businessman with offices in Switzerland, said that according to cover the debt. But Gazprom chairman Alexei Miller said Wednesday night that Gazprom has not yet received the money. Gazprom also said that Ukraine should be 600 million more in penalties for late payment.