Putin: Ukraine must pre-pay for gas from June 1

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FILE – In this Monday, May 12, 2014 file photo Russian President Vladimir Putin meets with Interior Ministry Troops Commander Nikolai Rogozhkin, appointed as president’s representative in the Siberian Federal District, in the Bocharov Ruchei residence in the Black Sea resort of Sochi, Russia. Russia will only deliver gas to Ukraine only if it pays in advance starting from next month, President Vladimir Putin said in a letter released Thursday May 15, 2014, raising the pressure on the struggling neighbor. (AP Photo/RIA-Novosti, Mikhail Klimentyev, Presidential Press Service)

FILE – In this Monday, May 12, 2014 file photo Russian President Vladimir Putin meets with Interior Ministry Troops Commander Nikolai Rogozhkin, appointed as president’s representative in the Siberian Federal District, in the Bocharov Ruchei residence in the Black Sea resort of Sochi, Russia. Russia will only deliver gas to Ukraine only if it pays in advance starting from next month, President Vladimir Putin said in a letter released Thursday May 15, 2014, raising the pressure on the struggling neighbor. (AP Photo/RIA-Novosti, Mikhail Klimentyev, Presidential Press Service)

In this photo taken Wednesday, May 14, 2014, Russian President Vladimir Putin meets with Orenburg region governor Yuri Berg in the Bocharov Ruchei residence in the Black Sea resort of Sochi, Russia. Russia will only deliver gas to Ukraine only if it pays in advance starting from next month, President Vladimir Putin said in a letter released Thursday, raising the pressure on the struggling neighbor. (AP Photo/RIA-Novosti, Mikhail Klimentyev, Presidential Press Service)

Viktor Melnikov, 76, an elderly local citizen, looks the damage after a mine exploded near his house during an exchange fire between pro-Russian militants and government troops outside Slovyansk, eastern Ukraine, Thursday, May 15, 2014. The Organization for Security and Cooperation in Europe, a trans-Atlantic security group, put forward a “road map” calling for national dialogue as a first step toward resolving the escalating tensions. (AP Photo/Alexander Zemlianichenko)

Viktor Melnikov, 76, an elderly local citizen, looks at the damage after a mine exploded near his house during an exchange of fire between pro-Russian militants and government troops outside Slovyansk, eastern Ukraine, Thursday, May 15, 2014. The Organization for Security and Cooperation in Europe, a trans-Atlantic security group, put forward a “road map” calling for national dialogue as a first step toward resolving the escalating tensions. (AP Photo/Alexander Zemlianichenko)

A boy stands atop a seized APC that was set alight during a fighting between pro-Russian militants and government troops at Oktyabrskoye village, about 20 km. (12 miles) from Kramatorsk, eastern Ukraine, Wednesday, May 14, 2014. At list six servicemen were ambushed and killed and eight others wounded Tuesday afternoon outside the town of Kramatorsk, Ukrainian defense ministry said. (AP Photo/Alexander Zemlianichenko)

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KIEV, Ukraine (AP) — Ukraine must pay in advance for Russian gas supplies starting from next month, Russian President Vladimir Putin said Thursday, raising pressure on the struggling neighbor as Moscow voiced dismay over what it says is Ukraine’s reluctance to implement an international peace plan.

Putin said in a letter to European leaders that Ukraine’s debt for Russian gas supplies has reached $3.5 billion, and because of its refusal to pay Moscow, it will have to switch to pre-paid gas deliveries starting from June 1.

The Russian president first warned of the move in April in a letter to European leaders, whose nations are customers of Russian state-controlled Gazprom natural gas giant. Ukraine serves as a major conduit for Russian gas supplies to Europe, and pricing disputes have led to shutdowns in the past.

Putin said that gas talks involving Russia, Ukraine and the European Union have failed to reach a compromise, and pointed at Ukraine’s refusal to pay even though it has received $3.2 billion bailout from the International Monetary Fund.

Ukraine says it would pay if Moscow restores the price discounts canceled after the toppling of pro-Russian President Viktor Yanukovych in February after months of protests.

Russia denounced Yanukovych’s ouster as a coup and quickly sent its troops to take over Ukraine’s Black Sea peninsula of Crimea, which it annexed weeks later. In April, a mutiny erupted across Ukraine’s vast eastern industrial heartland, where pro-Russian insurgents seized government buildings and fighting government troops. Many in the east see the new government in Kiev as nationalists bent on repressing Russian speakers.

The insurgents in the Donetsk and Luhansk regions declared independence after Sunday’s referendum, which was rejected as a sham by Ukraine’s government and the West. Those in Donetsk even asked to join Russia, but the Kremlin has clearly signaled it has no intention to do so in an apparent hope to negotiate a settlement to the worst Russia-West crisis in a generation.

Kiev and the West alleged Russia was fomenting the unrest, which Moscow denies. The U.S. and European Union have imposed sanctions on Russia in the crisis.

Moscow supported a Swiss-brokered peace plan, which calls for ending hostilities and amnestying the rebels and urges a nationwide dialogue between the government and its foes on decentralization and the status of the Russian language. Ukraine has remained cool to the initiative, saying it fails to require any Russian action to de-escalate the crisis.

The first session of a round table intended to jumpstart the dialogue was held in Kiev Wednesday, but the government has refused to invite representatives of the insurgents in the east, saying it wouldn’t talk to “terrorists.”

The next round of talks is expected on Saturday, but the government hasn’t yet made any specific commitments.

In the east of Ukraine, insurgents said they hadn’t been invited to the Kiev round table and said that talks should be held in Donetsk. One of the leaders of the insurgency, Denis Pushilin, said it should focus on prisoners exchange and the pullout of the government forces, who he called “occupation troops.”

In Moscow, Russian Foreign Ministry spokesman Alexander Lukashevich criticized what he called a “stubborn reluctance of the authorities in Kiev to launch a real process of national

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