Associated Press: Putin: Ukraine must pay up front for natural gas

Ukraine must pay in advance for Russian gas supplies starting next month, Russian President Vladimir Putin said Thursday, raising pressure on the struggling neighbor as Moscow voiced dismay over what it says is Ukraine's reluctance to implement an international peace plan.

Putin said in a letter to European leaders that Ukraine's debt for Russian gas supplies has reached $3.5 billion, and because of its refusal to pay Moscow, it will have to switch to pre-paid gas deliveries starting from June 1.

The Russian president first warned of the move in April in a letter to European leaders, whose nations are customers of Russian state-controlled Gazprom natural gas giant. Ukraine serves as a major conduit for Russian gas supplies to Europe, and pricing disputes have led to shutdowns in the past.
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