"If our partners do not fulfill agreements, we will have to reduce supplies. What else can we do?" Putin said.
Russian energy giant Gazprom last month quoted Ukraine's outstanding debt at $2.4 billion. Some of the funds have reportedly been repaid, but Gazprom has demanded full payment, and threatened supply cuts. Ukraine transits about 80% of Russia's Europe-bound gas, according to Ria-Novosti.
The countries have also agreed on a gradual shift to market gas prices. Ukraine currently pays $179.5 per 1,000 cubic meters for gas imported from Russia or via Russian territory.
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