UPDATE 2-Europe's gas supply at risk as Gazprom warns Ukraine over unpaid bills

Source: Reuters

MOSCOW, March 7 (Reuters) - Gazprom issued a thinly veiled warning on Friday that it could stop shipping gas to Ukraine over unpaid bills, increasing pressure on the new government in Kiev and its supporters in Europe, which gets half its Russian gas through Ukraine.

"Either Ukraine makes good on its debt and pays for current supplies, or there is risk of returning to the situation of early 2009," Gazprom CEO Alexei Miller said.

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Ukraine's desperate financial position has deteriorated further in the two weeks since pro-Western protestors in Kiev brought down Moscow-backed president Viktor Yanukovich, which prompted Russian forces to seize control of Ukraine's Crimea peninsular in response.

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"Today, March 7, was the deadline for payments for gas supplies to Ukraine in February. Gazprom has not received payments for the debt," Miller said, adding that Ukraine's overdue gas debt to Russia now stands at $1.89 billion.

http://www.reuters.com/article/2014/03/07/ukraine-crisis-gas-idUSL6N0M425S20140307

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