Naftogaz head to talk with Gazprom over gas threat

KIEV, Feb 10 (Reuters) - The head of Ukraine's state energy firm Naftogaz is due to travel to Moscow on Sunday to hold talks with Gazprom (GAZP.MM: Quote, Profile, Research) after the Russian gas monopoly threatened to cut off supplies over payment of debt, Interfax reported.

The threat, made on the eve of President Viktor Yushchenko's visit to Moscow, has raised concerns across Europe, which receives a quarter of its gas needs from Russia, 80 percent of it via Ukraine, and was briefly affected by a supply cut in a similar row in 2006.

Gazprom said Naftogaz owes it $1.5 billion in debt and has given the Ukrainians until Monday to settle the matter. It said it would cut supplies of Russian gas, leaving supplies from other countries intact. Naftogaz head Oleh Dubyna will hold talks with Gazprom management on Monday, Interfax-Ukraine cited an official from the Ukrainian firm as saying. Yushchenko had ordered Prime Minister Yulia Tymoshenko to resolve the issue by Sunday.

Gazprom had no immediate comment, but on Friday it said after a meeting that day with Naftogaz's first deputy head that no deal was reached.

Both Ukraine and Russia have assured Europe that gas flows westward would not be interrupted. (Writing by Sabina Zawadzki, editing by Will Waterman)