Ukraine's state-owned oil and gas monopoly Naftogaz Ukrainy and Russian gas monopoly OAO Gazprom (GAZP.RS) are in talks to resolve the payment dispute, which caused Gazprom to reduce the gas supply to Ukraine, a person familiar with the matter said Monday.
Gazprom cut the supply to Ukraine by about 25% Monday. Naftogaz Ukrainy said that the cut wouldn't affect the country's economy due to unusually warm weather, and that the gas from underground storage would be used to offset the drop in supply.
Gazprom said Monday the cuts wouldn't affect supplies to customers in Europe.
E.ON Ruhrgas AG, Germany's largest importer of natural gas, Monday said it didn't expect natural gas supplies to be affected by the dispute.
Deliveries of natural gas from Russia to Western Europe via Austria haven't been interrupted a spokesman for Austria's oil and gas company OMV AG (OMV.VI) said Monday. Polish gas monopoly Polskie Gornictwo Naftowe i Gazownictwo or PGNiG (PGN.WA) also said Monday that the natural gas imported via Ukraine is flowing without interruption.
Gazprom said Friday that Ukraine's supply would be reduce, saying the country has failed to act on a prior agreement between the Russian and Ukrainian presidents.