Russian gas giant OAO Gazprom has again threatened to cut exports to Ukraine over a $1.3 billion debt. Gazprom shut off supplies to Ukraine in January 2006 and then suspected it of siphoning off fuel meant for Europe from the pipeline which transits its territory.

"If the debt is not settled in October, Gazprom will be forced to begin to cut natural gas supplies to Ukrainian consumers," the state-run gas company said in a statement. It appears that this debt stems from the siphoned gas, as Ukrainian energy company Naftogaz doesn't appear to know of any debt:

"We don't understand what Gazprom means. We don't understand where (the sum) came from," Naftogaz spokesman Oleksy Fyodorov told AFP. "We hope that by tomorrow, at least, we'll understand what they're talking about and define our position," he said.

Meanwhile, the European Commission called on Russian gas monopoly Gazprom to resolve speedily differences over payment for gas delivered to the former Soviet republic, also noting Gazprom had promised to honor all existing gas supply commitments to European companies. In January 2006, Russia "stopped" gas to Ukraine, meaning it reduced its output with the amount which Ukraine was supposed to get. However, apparently Ukraine continued to siphon gas as the supply for European partners was also affected.

Gazprom also threatened neighboring Belarus with similar cuts in August, before the country paid $460 million of debt. Gazprom's pipelines to Europe cross Ukraine and Belarus, but most of the gas passes through the Ukrainian pipeline.

Gazprom, founded in 1989, is the largest Russian company and the biggest extractor of natural gas in the world and the world's third largest corporation with over $ 300 billion of market capitalization.