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Russia, Ukraine to Hold Emergency Gas Talks

03 January 2006

Officials of Russia's state-run energy company Gazprom say they will confer with their Ukrainian counterparts Tuesday in Moscow to discuss the mounting dispute over their natural gas trade.

Russia suspended natural gas deliveries to Ukraine this week after Kiev refused to agree to a 400 percent price increase that would in effect end subsidies Moscow has been granting to Kiev.

Ukraine says it is willing to pay Russia more for natural gas, but that price increases should be phased in gradually.

Gas deliveries to many of Gazprom's European customers dramatically decreased on Sunday and Monday, but the Russian firm says it has restored full service Tuesday to all its customers outside Ukraine.

Some information for this report provided by AFP, AP and Reuters.

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