KIEV (Ukraine) - UKRAINE'S gas company Naftogaz said on Tuesday that Russia's Gazprom cut natural gas supplies to Europe by about two-thirds, raising the stakes in a spiraling dispute between the two neighbours that bodes ill for European consumers.

Naftogaz spokesman Valentyn Zemlyansky said Gazprom sent only 92 million cubic meters of gas for European consumers on Tuesday, down from 221 on Monday or about 300 during previous days.

EU slams gas supply cuts as 'unacceptable' BRUSSELS - THE European Union slammed on Tuesday cuts in natural gas supplies to Europe as 'completely unacceptable' as an energy price war rages between Russia and Ukraine. 'This situation is completely unacceptable,' said a statement from the EU's presidency, currently held by the Czech Republic, and the bloc's executive arm, the European Commission. ... more

'That is all they are sending, in several hours Europe will feel it, he told The Associated Press.

Gazprom said late Monday that it will cut the amount of gas it ships to Europe through Ukraine by 65.3 million cubic meters. Gazprom said it was cutting gas supplies by the amount it accuses Ukraine of having stolen when it ran through its pipelines.

Kiev denies the accusations saying Russia is to blame for the disruption because it is refusing to ship extra gas used to make the delivery.

The statement is bad news for European consumers.

Some European countries are already experiencing supply problems after Russia cut off supplies to its neighbour on Jan 1 over pricing disagreements and outstanding debt. Hungary, Romania and Bulgaria say that supplies from pipelines through Ukraine remained down, in Romania's case by 30 per cent.

The reductions come as a European Union commission was to meet with senior Ukrainian officials Tuesday to discuss the crisis.

Russia's reductions appear aimed at putting pressure on Ukraine, which has turned down several offers on prices and transit fees by Gazprom. Ukraine has enough gas reserves to last for weeks without Russian gas.

During a similar dispute between Ukraine and Russia in 2006, several West European countries saw their gas supplies drop by 30 per cent or more. This time Gazprom's customers were better prepared, having built up substantial reserves.

While the previous gas cutoff was seen as punishment for Ukraine's pro-Western policies, this time Gazprom is insisting it is a commercial dispute. Both countries are seeking to prove they are a reliable energy partner for the EU.

Talks to resume
Meanwhile, the head of Ukraine's gas company Naftogaz says talks on resolving the gas dispute with Russia will resume on Thursday.

Oleh Dubina announced on Tuesday that he will travel to Moscow. There has been no immediate comment from Russia's Gazprom gas company.

The European Union has called the sudden cutoff to some of its member countries 'completely unacceptable'. -- AP