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Russia's President Dmitry Medvedev has urged Ukraine to make a 'rational decision' about reaching an agreement with Moscow on gas prices. Medvedev made the remark on Wednesday after Russian Prime Minister Vladimir Putin said that Ukraine had threatened to prevent Russian gas exports to Europe via its territory.
Ukraine's position is both legally and economically 'inappropriate,' said Putin, pointing out that that the two countries must respect the cross-border gas delivery contracts that they have signed.
The Russian gas giant Gazprom was threatening to cut all supplies to Ukraine at 10:00 Moscow time (0700 GMT) on Thursday, January 1 in the absence of a deal for 2009.
Gazprom says Ukraine owes more than USD 2 billion to Moscow over its past gas imports.
Kyiv, however, says that it has transferred USD 1.5 billion to a Russian account to cover its debt. Gazprom chief Alexei Miller maintains that the company's accounts show no payment.
Up to 80 percent of Europe's gas supply comes from Russia via pipelines that pass through Ukraine. European gas imports have been threatened by disputes between Moscow and Kyiv several times over the last decade.
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