Turkmenistan warns Ukraine over gas debts

ASHGABAT, Mar 19 (Reuters) Turkmenistan's Foreign Ministry has said Ukraine was dragging its feet over paying gas debts and warned that further delays could threaten gas sales to Ukraine.

The Foreign Ministry yesterday in a statement said it was unhappy that a Ukrainian delegation, which was set to sign an agreement on paying off Kiev's outstanding gas debts, had put off a planned visit to Turkmenistan.

''The dragging out by the Ukrainian side of the fulfilment of its debt obligations places under question bilateral cooperation in the fuel and energy sphere,'' the ministry said.

''Turkmenistan hopes that the leadership of Ukraine in the near future will resolve the question of paying off debts for the delivery of Turkmen natural gas.'' Ukraine and Turkmenistan, Central Asia's largest natural gas producer, have been bickering over Kiev's gas debts, which Turkmenistan President Saparmurat Niyazov says total 158.9 million dollars.

The two countries earlier this month came to agreement on about 59.6 million dollars of the debt and the Ukrainian delegation was due to arrive in Turkmenistan this week to sign a payment schedule for the remaining debts.

Turkmenistan has become a key supplier of gas to Ukraine after Kiev signed a deal this year to increase purchases of Turkmen gas and reduce its dependence on Russian gas.

Turkmenistan relies on Russian state controlled gas giant Gazprom to pipe its gas to foreign customers.

REUTERS SB VC0838