Deadline looms in Ukraine gas row

Ukrainian President Viktor Yushchenko is in Moscow to try to persuade Russia not to cut gas supplies to his country in a dispute over an unpaid bill.

He has just a few hours with President Vladimir Putin to settle the row over a demand by Russian gas monopoly Gazprom for Ukraine to pay $1.5bn (£770m).

Russia is threatening to switch off supplies at 1500 GMT, but Kiev disputes the bill.

Gazprom said the disagreement would not affect supplies to the rest of Europe.

But as most of the company's gas supply to western Europe passes through Ukraine, concerns remain that the row could escalate into a repeat of the supply interruption that happened two years ago.

Deep suspicion

In January 2006, gas shipments to Europe were disrupted after Russia halted fuel supplies to Ukraine for several days amid a fierce argument over price hikes.

Although Gazprom claims the current dispute is purely commercial, fears have been raised that Moscow might be exploiting its energy resources to exert political pressure on its neighbours.

Mr Yushchenko and Mr Putin exchanged cordial remarks before their talks got under way. The Ukrainian leader said Russia would always be a strategic partner for his country, while Mr Putin stressed that trade was growing between them.

But then, behind closed doors, they attempted to find a way out of the dispute, with time rapidly running out.

The BBC's Richard Galpin in Moscow says the crux of this latest crisis seems to be over how the bill is to be paid.

Ukraine's pro-Western Prime Minister Yulia Tymoshenko wants the money paid directly to Gazprom, rather than going through an intermediary company - RosUkrEnergo - which she views with deep suspicion.

Why are European countries concerned?

Gazprom controls about a third of the world's gas reserves and it is responsible for a quarter of Europe's supplies. Most of Europe's gas is piped via Ukraine, and when Gazprom last shut down the pipeline, the flow to the rest of Europe fell, in some areas, by 40%.