Ukraine may miss gas payments

Russian Prime Minister Vladimir Putin says Ukraine could again have difficulty paying for Russian natural gas.

Putin's announcement triggered speculation about a new gas crisis between the two countries.

The Russian Prime Minister on Friday accused Ukrainian President Viktor Yushchenko of blocking the transfer of funds to pay for Russian gas.

He says an IMF statement on Ukrainian economic policy, means the country is able to pay.

Vladimir Putin, Russian Prime Minister, said, "The IMF has made another statement that Ukrainian authorities are pursuing a reckless economic policy, and if things continue the same way the IMF would refuse to cooperate with Ukraine and would not give any more loans (to Ukraine). However, the situation today is that Ukraine actually does have money, and this was also confirmed by the IMF."

The two countries signed a take-or-pay deal in February following a price dispute in January that left thousands of homes in Europe without heat for days.

Hit by a severe economic downturn, Ukraine has been paying for less gas this year than contracted.

The European Commission on Friday said it had proposed to lend Ukraine 500 million euros.

But the IMF's managing director said that a wage-raise bill signed by Yushchenko on Friday, which the fund had asked him to veto, casting doubt on the next portion of a $3.8 billion IMF bailout programme for Ukraine.