Hungary suspends gas supplies to Ukraine

Hungary's gas pipeline operator, FGSZ, says it has suspended delivery of gas to neighbouring Ukraine "indefinitely".

Ukraine has been receiving gas from Hungary, Poland and Slovakia since Russia cut off supplies to Ukraine in June in a dispute over unpaid bills.

Ukraine's state-owned gas firm, Naftogaz, confirmed the stoppage. It called the move "unexpected and unexplained".

FGSZ said it cut deliveries to Ukraine to raise the flow of gas to Hungary.

With winter approaching fears are mounting that Ukraine will be unable to heat homes and power industry without Russian gas.

On Friday Russian and Ukrainian energy ministers

are meeting in Berlin for European Union brokered talks, aimed at heading off such a crisis.

Gazprom meeting

Hungary said the stoppage late on Thursday was for technical reasons and because it expected Hungarian demand for gas imports to increase.

It comes THREE days after a meeting in Budapest between the head of Russian gas giant, Gazprom and Hungary's prime minister, Viktor Orban.

Prime Minister Orban has been critical of EU sanctions on Russia and has maintained a closer relationship with Moscow than his western European neighbours.

Earlier this year Gazprom and Russian President Vladimir Putin warned of consequences if EU MEMBER states went ahead with deliveries to Ukraine.

Businessday