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Russia's Gazprom Halts Ukraine Gas Supplies

Russia's Gazprom Halts Ukraine Gas Supplies

Russian company Gazprom has stopped gas supplies to Ukraine until Kiev pays for more energy.

Gazprom said that by 7am GMT on Wednesday Ukraine had received all the gas it had paid for and would not be sent more because the country had yet to pay in advance for future supplies.

Chief executive Alexei Miller warned that the stoppage posed a serious risk to the secure transit of gas to Europe via Ukraine, as well as to Ukrainian consumers.

Some 15% of the gas used in Europe travels through Ukraine.

In response to the announcement, Ukrainian Prime Minister Arseny Yatseniuk said his government would stop state energy firm Naftogaz from buying any more gas from Russia to reduce its energy dependence on Moscow.

Ukraine will also ban Russian airlines from using the country's airspace for transit flights.

Russia resumed gas shipments to its neighbour less than two months ago after they signed an EU-brokered deal ensuring supplies until March.

Past disputes between Russia and Ukraine have led to stoppages.

A previous cut-off in 2009 caused serious disruptions in shipments to EU countries at the height of winter.

The European Commission has said it is not worried about the situation at the moment.

Spokeswoman Anna-Kaisa Itkonen said: "The European Commission has no particular concern about the gas flows from Russia to Ukraine and no further comment to make."

Gazprom's move comes at a time of heightened tensions between Moscow and Kiev over Crimea, which Russia annexed last year but is still recognised as Ukrainian territory by many countries.

A state of emergency was declared there after Russian media reported that two pylons in the Kherson region of Ukraine north of Crimea had been blown up by Ukrainian nationalists, cutting electricity supplies to most of the territory.

Russia has accused Ukraine of deliberately refusing to help rebuild power lines, but Kiev has dismissed suggestions it might be tacitly backing those responsible for the blackout.

In the east of Ukraine, scene of months of fighting between the government and pro-Russian rebels, a recent rise in violations of a ceasefire between the two sides threatens to shatter the agreement after a period of of relative calm.

It is feared the row over energy could fan tensions in the region.