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WRAPUP 2-Ukraine president gives PM 3 days to solve gas row

Fri Feb 8, 2008 10:57pm IST
 
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(Adds Gazprom on talks failure)

By Dmitry Zhdannikov and Ron Popeski

KIEV/MOSCOW, Feb 8 (Reuters) - Ukrainian President on Friday gave his prime minister until Monday to settle a gas debt row with Russia as talks failed in Moscow and Europe urged the two states to resolve the dispute and guarantee smooth gas transit.

"I am asking for an urgent analysis of the situation and implementation of full-fledged measures to ensure uninterrupted supplies of gas," Viktor Yushchenko said in a telegram to Prime Minister Yulia Tymoshenko, appearing on his Internet site.

Russian gas export monopoly Gazprom (GAZP.MM: Quote, Profile, Research) is threatening to cut off some supplies to Ukraine from next week if Ukraine does not settle a $1.5 billion debt. Ukraine has blamed a costly, Russian-imposed intermediary trading company for the arrears.

The threat has sent jitters across Europe, where customers rely for a quarter of their needs on Russian fuel, reviving memories of gas shortages in winter 2006, following a similar dispute between Moscow and Kiev.

On Friday, Gazprom said talks with a mid-level delegation from Ukraine's state energy firm Naftogaz had failed and it would start cutting gas flows from 0700 GMT on Tuesday if the debt is not redeemed.

"The meeting showed a complete unpreparedness on the Ukrainian side to discuss the problem," it said in a statement.

The International Energy Agency, the adviser on energy matters to industrialised consumer countries, on Friday urged all parties to resolve the dispute.  Continued...

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