Financial Times FT.com

Russia cuts flows via Ukraine

Russia yesterday began reducing gas flows to Europe via Ukraine by the amount it says Kiev is siphoning off, a measure that could further hurt supply to European countries facing freezing temperatures.

Vladimir Putin, prime minister, ordered state-run monopoly Gazprom to reduce supplies to the Ukrainian border in an escalation of the dispute between the two countries. Europe relies on pipelines across Ukraine for one fifth of its gas.

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