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Ukraine is halting natural gas imports from Russia over price aggression before the worlds biggest exporter of the fuel cuts supplies, raising the risk of disrupted flows to Europe.

Ukraine will stop buying gas this month until a price agreement is reached, Energy Minister Yuri Prodan said in Kiev today. Russian President Vladimir Putin told his cabinet today to wait for further talks with Europe and Ukraine before demanding prepayment for supplies to Ukraine, which owes more than $2.2 billion for gas it imported through March.

About 15 percent of Europes supplies flow through Ukraines pipelines from Russia, making the country a linchpin in the continents energy security. Ukraine, which buys half its gas from Moscow-based OAO Gazprom, is seeking alternative supplies, including imports from Europe. Putin has used gas as a tool to pressure the government in Kiev to abandon attempts to reorient the economy toward the European Union.

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Europe can relax until September, Alexander Paraschiy, an analyst at Concorde Capital in Kiev, said by phone. If Poland and Hungary begin gas deliveries to Ukraine soon, like last year, Ukraine can survive without Russian gas, and transit to Europe wont suffer.

Gazproms price increase of more than 80 percent in April amounted to aggression against Ukraine, Prime Minister Arseniy Yatsenyuk said last week. The move threatens supplies to the country and transit shipments to Europe, Prodan said yesterday, according to Russias Interfax news service.

Putin, speaking at his residence near Moscow, told Gazprom and the government to seek additional talks before demanding prepayments from Ukraine. He criticized Europe for failing to provide financial support to Ukraine, even while recognizing the government in Kiev.

Russia continues to provide economic support and subsidize Ukraines economy with hundreds of millions, billions of dollars, Putin said. This situation, of course, cant go on forever.

Ukraine plans to import fuel via Slovakia, using a pipeline in reverse, Prodan told reporters. While the plan is technically possible, pipeline officials from both countries will hold talks next week to clear remaining legal obstacles, he said.

We have full backing from the EU, Prodan said, citing talks with the EU energy commissioner yesterday. It will help to solve question with reverse gas supplies from Slovakia.

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Ukraine Rejects Russian Gas Imports Before Putin Energy Meeting