Russian state gas monopoly OAO Gazprom (GAZP.RS) Tuesday said it planned to cut deliveries of natural gas to Ukraine further after Ukrainian officials didn't turn up for planned talks aimed at ending the pair's supply dispute.
"Due to the lack of progress in negotiations and (Ukrainian state oil company) Naftogaz's failure to sign gas supply contracts - including for January and February - gas supplies to Ukraine will be reduced by an additional 25% at 1700 GMT," Gazprom spokesman Sergei Kuprianov said in a statement.
Gazprom cut gas supplies to Ukraine by 25% Monday over unpaid bills and Ukraine's failure to finalize the details of a scheme to eliminate intermediaries from the two countries' supply arrangements, switching instead to direct delivery contracts.
Kuprianov told reporters earlier Tuesday that executives from Naftogaz had failed to arrive in Moscow for planned negotiations Monday.
Russian President Vladimir Putin and his Ukrainian counterpart Viktor Yushchenko seemingly resolved the debt dispute last month after talks in the Kremlin.
But the two countries have since been unable to finalize the details and are struggling to agree on a scheme for future supplies to the former Soviet republic.
Kuprianov denied allegations by Naftogaz Monday that Gazprom had cut supplies by 35% rather than the announced 25%, saying 104 million cubic meters a day were being delivered.
He also reiterated that the spat wasn't affecting the 356.6 million cubic meters exported daily to the European Union.
That figure equates to around a quarter of Europe's natural gas needs, but Gazprom has caused concern over its reliability as a supplier following high-profile disputes between Russia and other neighboring countries.
Naftogaz has promised not to syphon off gas destined for Europe to make up for the shortfall resulting from Monday's cut, as has happened during previous disagreements.
But Kuprianov said Ukraine had begun blocking independent inspectors' access to two gas-flow measuring stations.