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Gazprom says may cut gas deliveries to Ukraine by 25% on March 3

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Gazprom will reduce natural gas supplies to Ukraine by 25% on March 3 at 7:00 a.m. GMT, if problems, primarily debts, are not settled, a spokesman for Russia's energy giant said on Tuesday.
MOSCOW, February 26 (RIA Novosti) - Gazprom will reduce natural gas supplies to Ukraine by 25% on March 3 at 7:00 a.m. GMT, if problems, primarily debts, are not settled, a spokesman for Russia's energy giant said on Tuesday.

"This cannot go on. Unless outstanding problems are resolved, by way of ensuring its economic interests, Gazprom will, due to the nonpayment of gas arrears, reduce natural gas deliveries to Ukrainian consumers on March 3 at 10 a.m. [7:00 a.m. GMT]," Sergei Kupriyanov said.

Ukrainian President Viktor Yushchenko has urged Prime Minister Yulia Tymoshenko to pay off the country's gas debt to Russia as soon as possible, the presidential press service said on Tuesday.

He reportedly ordered her to repay the debt and report to him personally before 7:00 a.m. GMT on February 27.

The presidents of Russia and Ukraine agreed on a plan two weeks ago to settle Kiev's $1.5 billion debt for Russian gas supplies, with Yushchenko promising that his country would pay off the debt.

Gazprom has threatened to halt supplies if Ukraine fails to pay back $1 billion before March 14. An agreement was also reached to establish direct fuel supplies between Russian energy giant Gazprom and Ukraine's national oil and gas company Naftogaz.

Russia also proposed that Gazprom and Naftogaz set up two joint ventures on a parity basis. The two new companies would replace RosUkrEnergo, which holds a monopoly on gas exports, and gas import monopoly UkrGazEnergo. The Ukrainian government has already ruled to liquidate the latter.

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