Gazprom gets its due after Putin's threat

A fresh stand-off between Russia and Ukraine over gas payments has been averted, reported Deutsche Welle, the German broadcasting company.

''Russia's gas monopoly, Gazprom, says Ukraine's Naftogaz has paid the final installment of a $360 million debt'', the report said.

The payment came hours after Russian Prime Minister Vladimir Putin warned that Russia would halt gas supplies if the payment was not made by Saturday. Such a move would have likely disrupted supplies to Western Europe in a repeat of the dispute in January which left parts of Europe without heating for weeks amid a particularly cold winter.

On Thursday Russian Prime Minister Vladimir Putin warned that Russia would stop gas supply to Ukraine if it fails on payment of dues by Saturday which would in turn affect the Russian gas supply to Europe as well.

Ukraine is the maintransit route for Russian gas to Europe which meets 20 per cent of its requirement from Russia.

"If as a result of law enforcement actions and arrests of a number of officials there will be no payment (for Russian gas deliveries), it will lead to the stoppage of our energy deliveries to our customers in Ukraine as well as customer in Europe," Putin warned in Moscow (See:Ukraine's Naftogaz raided amid President-PM standoff).