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Ukraine and Gazprom yet to reach agreement

Gazprom and Ukraine's Prime Minister, Yulia Timoshenko, have failed to find common ground over the creation of a new company to import gas from Russia.

This raises new questions over how Ukraine will repay its US$ 1.5 billion debt to the firm.

Following talks with Gazprom CEO Aleksey Miller, Timoshenko told journalists a lot of problems had cropped up and she was determined not to leave until all the issues were solved.

Gazprom's spokesman confirmed that the talks would continue.

This comes despite a meeting last week between the Russian and Ukrainian Presidents, when they agreed the debt would be repaid, and that the present intermediary company RusUkrEnergo would stay in place.

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