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Russia cuts gas supply to Ukraine as tensions grow

By The Associated Press

This article was published June 16, 2014 at 7:41 a.m.

MOSCOW — Russia on Monday cut gas supplies to Ukraine as a payment deadline passed and negotiators failed to reach a deal on gas prices and unpaid bills amid continued fighting in eastern Ukraine.

The decision does not immediately affect the gas flow to Europe, but could disrupt the long-term energy supply to the region if the issue is not resolved, analysts said.

Ukraine's Naftogaz company head Andriy Kobolev said Russia had cut the supply of gas to Ukraine, but that Ukraine can manage without Russian gas until December.

Gazprom spokesman Sergei Kupriyanov said that since Ukraine had paid nothing for the gas by Monday, from now on the company would demand that Ukraine pay in advance for any future deliveries.

Ukraine was ready to accept a compromise in talks in Kiev of paying $1 billion now and more later, but Russia didn't accept the offer, the European Commission said in a statement.

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