Ukraine PM tells energy sector to prepare for Russian gas cut

KIEV (Reuters/AFP) - Ukrainian Prime Minister Arseny Yatseniuk ordered the energy sector to prepare for Russian gas cuts from Monday after Moscow and Kiev failed to resolve their differences over gas prices, raising fears of interruptions in gas flows to Europe.

Mr Yatsenyuk said in a statement that he had told regional administrators and the head of the state energy company to start implementing a plan for reduced energy use.

Moscow set Monday, June 16, as a deadline for Ukraine to pay off part of its gas debt of US$1.95 billion (S$2.4 billion).

Mr Yatseniuk also ordered the national regulator to revise transportation tariffs for Russian gas via Ukraine. Russia ships around a half of its gas exports to Europe through Ukraine, according to a government statement published on Friday.

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