Ukraine tries to settle its €935m gas bill
Ukraine’s energy minister is to hold urgent talks with Russia today after being threatened with a cut in gas supplies.
The Russian state gas monopoly Gazprom says it is owed around €935m by the country.
Ukrainian Prime Minister Viktor Yanukovych said Yuriy Boiko would hold talks with top company executives, adding: “the issue is very complicated.”
The dispute comes as Ukrainian election officials continued counting ballots from Sunday’s fiercely contested parliamentary vote.
Mr Yanukovych faces the possibility of losing his post, as the parties of his rivals – President Viktor Yushchenko and former Prime Minister Yulia Tymoshenko - make a strong combined showing that puts them in a position to form a cabinet.
Mr Yanukovych, who was strongly backed by Moscow when he lost the 2004 presidential race to Mr Yushchenko, has taken a more neutral stance since then, pledging to integrate more closely into Europe.
While Moscow largely stayed out of Sunday’s election, the ultimatum from the state-controlled gas giant could reflect the Kremlin’s hope to influence Ukrainian politics.
Gazprom’s announcement triggered memories of a New Year’s 2006 price dispute that saw gas supplies to the EU drop briefly after Gazprom halted direct shipments to Ukraine.
