JKX in 2005

Putin offers 3.6 bln usd credit to Ukraine to amortise gas price hike

MOSCOW AFX - Russia would offer Ukraine a 3.6 bln usd loan to pay for a major increase in gas prices being imposed by Russian company Gazprom, President Vladimir Putin said at a meeting with Ukraine's energy minister, Interfax news agency said.

Putin said the dispute has turned into a "real crisis" between the two
neighbours.

"We are ready to extend a commercial credit directly to your company
Neftegaz under guarantee from one of the first-class international banks," Putin was quoted as saying.

Crisis talks were being held in Moscow between representatives of
state-controlled Gazprom and Ukraine's state gas company Neftegaz as a January 1 deadline for Ukraine to agree to a more than four-fold increase in the price of Russian gas supplies approached.

newsdesk@afxnews.com