Russia Halts Gas Supplies To Kiev

Gas supplies to Ukraine have been reduced to zero Ukrainian energy minister Yuri Prodan said , Russia's state owned gas giant Gazprom said Ukraine had to pay up front for its gas supplies after Kiev failed to settle it's huge debt

Gazprom had asked Ukraine's state gas firm Naftogaz to pay $1.95bn (£ 1.15bn) of the $4.5 bn it said it was owed , it said it would continue to supply gas to Europe , although Gazprom chief Alexei Miller warned there were now "significant" risks for gas transit to the E.U. via Ukraine , Ukraine has enough reserves to last until December , according to Naftogaz

Later, the White House urged Moscow to resume talks with Ukraine , saying an E.U. proposal that Kiev pay $1bn on Monday and the rest in installments was a " reasonable compromise"

Russia-Ukraine ties remain tense since Moscow annexed Crimea in February

Kiev says Moscow backs separatists in the East of the country , Russia denies the charge

On Monday Gazprom said in a statement "from today , the Ukrainian  company will recieve Russian natural gas only in the amounts it has paid for", moments later , both Gazprom and Naftogaz say filed lawsuits against each other  at the International Council Commercial Arbitration (ICCA) in Stockholm

Gaz[rom said it wanted to recover $4.5bn from Naftogaz , while Naftogaz said itt was seeking to recover $6bnin "overpayment" for gas since 2010

Russian prime minister Arseniy Yatsensuk accused Moscow of blocking the deal to cause supply problems in Ukraine in the winter

The latest moves follow crisis talks between Ukraine , Russia and the E.U. in Kiev over the weekend

 Ukraine said it refused to clear its debits complety in protest gazproms frecent 80 % price increase