Q&A: Russia-Ukraine gas clash

MOSCOW/KIEV (Reuters) - Russia's Gazprom gas export monopoly cut off supplies to its neighbor Ukraine on Thursday over a contract dispute, raising the spectre of disruptions for gas consumers in the European Union.

Gazprom said shipments to Europe via Ukraine should not be affected by the cut-off. It was triggered by the collapse of talks over unpaid gas bills and the price Kiev will pay Russia for the fuel this year.

Analysts say the Gazprom supply cut to Ukraine will have a smaller impact than during a similar row in 2006 because Ukraine has enough reserves to ride out a standoff and keep shipping Russian transit gas to Europe.

WHAT HAPPENED TO THE DEBT?

Ukraine has said it paid off in full debts owed for gas supplies until the end of the year. Its state energy company Naftogaz says it has paid $1.52 billion to intermediary RosUkrEnergo.

Gazprom said the debts were worth over $2 billion. It confirmed RosUkrEnergo -- its 50/50 intermediary gas venture with two Ukrainian businessmen - received the $1.52 billion but says Gazprom itself has not received that money.

AND THE SUPPLY AGREEMENT?

Ukraine now pays $179.5 per 1,000 cubic meters (tcm) from $50 in 2005. After threatening to more than double the price to $400, Gazprom is now offering Kiev to sell gas at $250 per tcm.

Ukraine says that is too high, and is instead proposing paying $201. Kiev has also said if the price increases, Russia should also pay more in transit fees for allowing Gazprom to ship gas across its territory.