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Russia, Ukraine settle gas debt crisis
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Ukraine: Issue won't affect Europe

Ukrainian Prime Minister Yulia Tymoshenko on Wednesday promised the gas dispute between Kiev and Moscow would not affect energy supplies to the Europe Union.

"Ukraine is a reliable partner," Tymoshenko was quoted by the Interfax news agency as saying, "We will meet our responsibilities for the transport and export of gas to EU nations."

Tymoshenko said she would order the state gas company Naftogaz to calculate and pay its debt to Russia for natural gas supplied without contracts, local media reported.

The statement came after President Yushchenko, on the same day, urged the government to resume gas talks with Russia immediately, saying "this is the only way to settle the Ukrainian-Russian gas dispute".

"The gas row has caused concern in the European Commission," Yushchenko emphasized. He also pledged Monday to avoid a "gas war" with Russia.

But Naftogaz has said that it may reduce gas supplies to Europe if Russia reduces gas deliveries to Ukraine by another 25 percent, coinciding with Moscow's decision of a further cut.

Naftogaz also said Tuesday it may have to divert some of the Russian gas earmarked for Europe that transits through Ukraine if the country's own energy security comes under threat.

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