RIA Novosti cited Mr Vladimir Putin Prime Minister of Russia as saying that Ukraine is again having difficulty paying for Russian natural gas supplies and the EU is not going to lend Kiev money to solve the problems.

Mr Putin said "It seems we are again seeing problems emerge with paying for energy supplies.”

He said that Ukrainian Prime Minister Ms Yulia Tymoshenko told him by telephone on Friday that President Mr Viktor Yushchenko was blocking payments for Russian gas supplies.

Mr Putin said that IMF data showed Ukraine had gold reserves of USD 27 billion to USD 28 billion with a maximum of USD 12 billion required to cover the payment. He also noted that the European Union had refused to extend any loans to Ukraine to cover its gas purchases.

He said that "The EU has not given Ukraine any money. Ukraine has not received a single cent, not one hryvnia."

Mr Jose Manuel Barroso European Commission President said that he hopes Russia and Ukraine will resolve gas issues on their own without EU mediation. He told journalists the EU will support both sides in resolving problems with Russian gas deliveries to Europe through Ukraine but will not mediate commercial disputes between the former Soviet neighbors.

Russia supplies around one fifth of Europe gas through Ukraine. Brussels had announced intentions to take part in the modernization of Ukraine gas transit system.

(Sourced from RIA Novosti)