Ukraine's energy minister said his country may fully pay off its debt for Russian natural gas supplies before the end of Wednesday.
"According to my calculations...the payments must be completed today (Wednesday)," Fuel and Energy Minister Yuri Prodan told a Cabinet meeting, according to his spokesman Fent Di.
Russia's natural gas monopoly OAO Gazprom (GAZP.RS) issued a second ultimatum in a month Tuesday over Ukraine's debt for natural gas supplies.
Gazprom said it would reduce shipments of gas to Ukraine next Monday if a $1.5 billion debt it claims isn't paid off by then.
Earlier, Gazprom had threatened to halt shipments altogether if no agreement is reached on the debt. Both countries have since struck a deal, but Gazprom now complains about delays in formalizing and implementing that deal.
Most of the gas imported by Ukraine comes from Central Asia through pipelines operated by Gazprom, which also recently sold Russian gas to Ukraine to make up for shortfalls from Central Asia.
Much of the gas Russia sells to Western Europe goes through pipelines crossing Ukraine. Western European countries saw supply reductions in January 2006 when Gazprom temporarily halted shipments to Ukraine.
The dispute underlines Ukraine's dependence on Russia even as President Viktor Yushchenko tries to move the country closer to the West. Russia is often accused of using its natural resources to bully countries that have political differences with the Kremlin.