Russia-Ukraine gas talks collapse
Talks to resolve a gas supply row between Ukraine and Russia have failed, raising fears of possible energy shortages across Europe.
Gazprom said gas supplies to Ukraine would be cut on Thursday but that Russia would do its best to guarantee supplies to Europe.
Russian Prime Minister Vladimir Putin earlier said that Ukraine would block supplies to Europe if no deal was done.
Ukraine denies owing money to Gazprom, and says it has guaranteed gas transit.
The European Commission said Ukrainian Prime Minister Yulia Tymoshenko had given her assurances that there would be "no disruption of gas supplies to clients in the European Union".
In an announcement which came before the official deadline for the close of the talks, Gazprom said it would cut Ukraine's supply from 0700 GMT on Thursday.
Europe's gas pipeline network
"The debt to Gazprom for gas supplied earlier was not paid. Despite verbal statements from Kiev, Gazprom did not see any money in its account," said Gazprom's chief executive Alexei Miller in a live television briefing.
He criticised Ukraine's stance during the negotiations as "unconstructive", and said Gazprom had no legal reason to continue supplying gas to Ukraine.
Mr Miller said the contract to supply gas depended on the full settlement of £2bn in gas bills and late-payment fines levied by Gazprom.
He also suggested that Kiev was seeking to provoke a wider dispute, saying he was "forming the impression that there are political forces in Ukraine which are very eager to see a gas conflict between our two countries"