KIEV (AFP) - Ukraine said on Monday that Russia had reduced its gas shipments and was only sending its neighbour enough to cover Europe's fuel needs after the two sides failed to reach a compromise price deal.

"We have been informed that gas deliveries to Ukraine have been reduced to zero, with only the volumes sent for transit to European states," Ukrainian Energy Minister Yuriy Prodan told a government meeting, adding that Ukraine would "ensure reliable gas transits to European countries."