Russia warns of possible gas cuts

Russian Prime Minister, Vladimir Putin, has urged the European Union to lend financial support to Ukraine. He said the loans will help Kiev pay for Russian natural gas, and avoid disrupting shipments to European customers this winter.

Putin said that his country had done its part by paying transit fees of 2.5 billion US dollars in advance.

Last Friday, Putin held a telephone conversation with his Ukrainian counterpart Yulia Tymoshenko, over the issue. He said the two sides are again facing problems with the payment of energy supplies.

Russia provides a quarter of Europe's natural gas, with 80 percent being transported through Ukraine. Moscow cut off gas shipments to Kiev for nearly two weeks in January, over disputes on pricing and transit fees.