Financial Times FT.com

Kiev row flares as Gazprom limits supply

By Catherine Belton in Moscow and Roman Olearchyk in Kiev

Published: March 3 2008 09:17 | Last updated: March 3 2008 14:21

An energy standoff between Russia and Ukraine deepened on Monday after Gazprom reduced gas supplies to Kiev over unpaid bills and the Ukrainian government accused Moscow of “blackmail”.

Gazprom said it was reducing supplies to Ukraine by a quarter in protest at $600m (€395m, £302m) in unpaid gas bills, marking the second energy dispute between the two since 2006 when supplies to Europe were interrupted during a price dispute.

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