Russia corners Ukraine in gas dispute

Moscow — Russia's gas monopoly Gazprom, pressing its demand for big price rises, tightened the screws on Ukraine Thursday as negotiators raced against a New Year deadline to clinch a deal or have gas supplies cut off.

Gazprom limited the country's room for manoeuvre by buying Central Asian gas that would normally have gone to Ukraine.

Russian President Vladimir Putin drove home the point by suggesting Ukraine be offered a commercial loan of up to $3.6-billion (U.S.) to avert a cut in supplies to Ukraine — and Europe beyond — on New Year's Day.

“This deal gives Gazprom one more trump card in its dispute with Ukraine,” said energy analyst Valery Nesterov from the Troika Dialog brokerage.

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