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Kiev says Russia likely to agree to gas supply cuts

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Russia is highly likely to agree to reduce gas supplies to Ukraine from the contracted 40 billion cubic meters to 33 billion cubic meters in 2009, the Ukrainian fuel and energy minister said on Wednesday.
KIEV, March 18 (RIA Novosti) - Russia is highly likely to agree to reduce gas supplies to Ukraine from the contracted 40 billion cubic meters to 33 billion cubic meters in 2009, the Ukrainian fuel and energy minister said on Wednesday.

"Russia has tentatively agreed but this has not yet been formalized in writing," Ukrainian News information agency quoted Yuriy Prodan as saying.

Ukraine was contracted to buy 2 billion cubic meters of gas from Russia in February for a total of $720 million. However, it bought only half that volume.

Gazprom CEO Alexei Miller said earlier this month that Gazprom was not seeking to fine Ukraine, whose economy has been devastated by the global financial crisis, over the drop in contracted gas imports.

Ukraine's acting finance minister, Ihor Umanskiy, said on March 11 that Kiev had requested a $5 billion loan from Russia to pay for gas deliveries.

Gazprom temporarily suspended gas deliveries to Ukraine at the start of the year over a payment delay, and the sides' failure to reach a new gas deal.

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