Russian energy giant, Gazprom, says it will stop gas supplies to Ukraine starting January 1, until the country pays off its $2 Billion gas debt for supplies in November and December, and a new contract is concluded.

On Thursday Gazprom spokesman Sergey Kupriyanov said the talks are in a deadlock.

He said Ukraine has transferred $800 million for repayment of gas supplies in autumn, but also informed Gazprom that no more money would be transferred until the new year starts.

“Thus we would have no legal grounds to supply gas starting January 1 and we won’t be able to turn to direct contracts with Ukraine until the debt is paid off,” Kupriyanov said.

The two sides have been negotiating for the past two months over a settlement of the gas debt but with no result.

Also, Gazprom Deputy CEO Aleksandr Medvedev …