Washington: The United States has said it was "concerned" about Russia's decision to cut off gas supplies to Ukraine and its likely repercussions in Europe, and encouraged both sides to resolve their dispute in a businesslike manner.
"We are concerned that Gazprom has cut off gas sold to Ukraine," State Department deputy spokesman Gordon Duguid said in a statement yesterday.
"The US encourages Gazprom and Naftogaz to resume negotiations on an agreement that will maintain the reliability of gas delivery to Ukraine and Europe."
Russian energy giant Gazprom yesterday cut off gas supplies to Ukraine and raised rates sharply after the parties failed to agree to terms for a 2009 contract replacing the previous one that expired at midnight.
"We urge Russia and Ukraine to resolve their dispute over the gas debt and the terms of their natural gas supply arrangements in a transparent, commercial manner," Duguid said.
Major European consumers of Russian gas -- most of which transits across Ukraine -- reported no immediate impact on their supplies but the European Union expressed concern that the dispute had flared up yet again.