Russian gas monopoly Gazprom cut supplies to Ukraine by at least a quarter today over what it said were unpaid debts, hours after board chairman Dmitry Medvedev won Russia's presidential election.
Gazprom pledged its exports to Europe would not be affected. But Ukraine claimed the firm had not paid transit fees for gas going to Europe since December, a claim denied by Gazprom. A quarter of Europe's gas supplies pass through Ukraine.
Gazprom has threatened to cut gas supplies during previous pricing disputes with former Soviet neighbours Ukraine and Belarus, but this is only the second time it has acted on the threat after a landmark cut in the New Year of 2006.
That brief disruption reduced supplies to Gazprom's west European customers, making them wary of any hint of a new row. The new reduction comes as Europe's heating season is nearing its end, unlike in 2006 when it came in the middle of winter.
"Gazprom is a reliable gas supplier, but we cannot and won't supply gas without payment," said Gazprom spokesman Sergei Kupriyanov. He said deliveries had been reduced by 40 million cubic metres a day.
Ukraine's state energy firm, Naftogaz, confirmed supplies had been reduced. It gave a figure of 46 million cubic metres a day, revised from an earlier report of 38 mcm, as it said Gazprom had slashed the supplies by a further 10 percent later on the day.
"Naftogaz has just received another notice from Gazprom saying gas flows have been cut by a further 10 percent. This amounts to reductions of 46 million cubic metres per day," Naftogaz spokesman Valentyn Zemlyansky told reporters.
By comparison, Gazprom supplies Europe with around 410 mcm a day and Ukraine gets 135 mcm a day.
Zemlyansky said the volumes were insignificant for Ukraine and would not have an impact on its consumers.
Gazprom declined to comment on any additional reduction.
Ukraine's First Deputy Prime Minister Alexander Turchinov later said Gazprom had failed since December to pay for the transit of gas to Europe through Ukrainian territory, a claim Gazprom denied.
"Since December, Russia's Gazprom has not paid Naftogaz a kopeck for the transit of Russian gas," Mr Turchinov told local television.