Russia's Gazprom to cut Ukraine gas supplies by 50 percent

Gazprom has already cut supplies by 25 percent and decided "to cut deliveries by another 25 percent" at 1700 GMT Tuesday, company spokesman Sergei Kupriyanov said on state television.

Ukraine is also the transit route for the pipelines used to export huge quantities of Russian gas to the European Union. However, deliveries to Europe "will be assured at full volume," Kupriyanov said.

The row echoed a 2006 dispute when Gazprom cut off all Ukraine’s gas because of payment problems, triggering a ripple effect of gas shortages across Europe. Russian-Ukrainian tensions and Gazprom’s tough stand toward neighbours has sparked nervousness in EU capitals over perceived over-reliance on Russian energy supplies.

But Kupriyanov placed the blame firmly on Ukraine, saying Kiev had failed to negotiate an alleged 600-million dollar (395-million euro) debt following an initial supply cut of 25 percent on Monday. "Ukraine has not restarted negotiations. The head of Naftogaz Ukraine has not come to Moscow," Kupriyanov said, referring to Ukraine’s state gas company.

Ukraine is also preventing independent experts from monitoring the volumes of gas being delivered to Ukraine, Kupriyanov said. Russia has in the past accused Ukraine of using more gas than it pays for by siphoning off supplies destined for Europe. Ukrainian President Viktor Yushchenko on Monday warned the dispute could lead to a new "gas war" with Moscow. The European Union has urged the two sides to find an agreement. Naftogaz has promised not to divert gas bound for Europe to make up for the shortfall and said it would instead make use of gas from its own reserves.

The dispute came as Dmitry Medvedev, chairman of Gazprom and a defender of the company’s hardball negotiating tactics, won Russia’s presidential election on Sunday with a huge majority.