Gazprom and Ukraine Settle Gas Dispute

Moscow -- Russia's natural gas giant Gazprom resumed full supplies to Ukraine Wednesday after two days of cutbacks resulting from an unpaid bill.

Ukraine's gas company Naftogaz threatened Tuesday to curtail supplies to Europe in the wake of Gazprom's two cutbacks of 25 percent of Ukraine's natural gas supply announced Monday and Tuesday.

The dispute over Ukraine's $600 million outstanding bill was resolved over the phone, Itar-Tass reported.

"Gazprom has resumed gas supplies. I believe that supplies will reach full capacity by tomorrow, as some time is needed for the gas transportation system to resume its normal regime," a Naftogaz spokesman said.

The spokesman said Gazprom Chief Executive Officer Alexei Miller and Naftogaz chief Oleh Dubina agreed gas supplied from Jan. 1 to March 1 would be paid for under previous agreements, the report said.

Ukrainian President Viktor Yushchenko said Wednesday that supplies to Europe would not be reduced.

Copyright 2008 by United Press International.