Russian PM: May Force Ukraine To Pay For Gas In Advance-Report

By Olga Razumovskaya

MOSCOW--Russia may force Ukraine to pay for gas that it supplies to it in advance, Russian Prime Minister Dmitry Medvedev said Tuesday, Interfax reported.

The comments come after a statement by Russian gas giant OAO Gazprom's (GAZP.RS) Chief Executive Officer Alexei Miller in which he expressed his concerns over Ukraine not having paid $882 million for the gas that had been supplied in August.

Mr. Miller called the situation "quite grave."

The failure to secure a cheaper price for gas by Ukraine has put a strain on the country's finances, as the government supports Naftogaz, which sells gas to households below the price it pays to Gazprom.

The trade pressure on Ukraine is mounting as Ukrainian President Viktor Yanukovych wants to sign a free-trade and political-association deal with the European Union at the end of November.

Agency website: www.interfax.ru

Write to Olga Razumovskaya at [e-mail]

Order free Annual Report for Gazprom OAO

Visit http://djnweurope.ar.wilink.com/?ticker=RU0007661625 or call [phone]

Order free Annual Report for Gazprom OAO

Visit http://djnweurope.ar.wilink.com/?ticker=US3682872078 or call [phone]