President Putin has written a letter to each
of the 19 European countries to whom Russia sells gas telling them he will cut
off gas to Ukraine on June 2nd unless Ukraine begins prepaying. Ukraine is currently paying nothing for gas
and owes Gazprom $3.5 bn. In the letter
Russia says that it is willing to negotiate terms but has received no proposal
from Ukraine. For Russia to supply
Europe while cutting off Ukraine, Ukraine would have to allow transit of the
gas. (FT, Friday, p4)
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