Gazrpom has said it expects the Naftohaz Ukrainy national oil and gas company to redeem its gas debts by January 1, 2009.

Sergei Kuprianov, the spokesman for Gazprom, gave the position of the Russian gas monopolist on the Russian Vesti television channel.

He also said that Gazprom can suspend gas supplies to Ukraine from January 1, 2009, if the companies fail to sign contracts by the date.

Kuprianov further said that the main condition of a memo of October 2 is full redemption of the gas debt by Naftohaz Ukrainy.

The redemption of the gas debt by the Ukrainian national company will facilitate the signing of long-term contracts on gas supplies to Ukraine and gas transit through Ukraine to Europe, he said.

As Ukrainian News earlier reported, Prime Minister Yulia Tymoshenko has denied that Ukraine owes Russia USD 2.4 billion for gas supplies.

Russia's President Dmitry Medvedev has said that transition to direct gas supplies from Russia to Ukraine would be impossible if Ukraine fails to pay the gas debt of USD 2.4 billion.

RosUkrEnergo announced on November 20 that Naftohaz Ukrainy owed it USD 2.4 billion for gas supplies.

Naftohaz Ukrainy earlier announced that it owed RosUkrEnergo USD 1.26-1.27 billion for gas supplies.

Naftohaz Ukrainy and Gazprom are presently holding negotiations on supply of natural gas to Ukraine in 2009 and subsequent years.

Gazprom said the transition to direct supplies from 2009 required redemption of gas debts by Naftohaz Ukrainy.

Naftohaz Ukrainy and Gazprom in early October signed an agreement to transfer to the market price of gas by 2012.