Ukraine is taking gas from its underground storages, which could have a "negative effect" on gas transit to Europe , a senior executive from Russian state gas firm OAO Gazprom (GAZP.RS) said Thursday.

Ukraine said this week that it stopped taking gas from Gazprom at the start of November as it had sufficient supplies until the end of the year.

"That means domestic production and underground storages are used to provide for the needs of the domestic market," said Pavel Oderov, head of Gazprom's International Business Department. He said gas reserves in storage are needed to ensure gas transit to Europe .

Russia accounts for one-quarter of Europe 's gas needs, the bulk of which flows via Ukraine . Supplies to Europe were disrupted in 2006 and 2009 amid price and contract disputes between Ukraine and Russia .

Ukraine owes $1.3 billion for gas deliveries, and Gazprom is considering granting an extension on payments, Mr. Oderov said.
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