MOSCOW

The chairman of Russian gas giant Gazprom has warned supplies of gas to Europe could be seriously affected within two days amid an ongoing dispute with Ukrainian firm Naftogaz.

Alexei Miller said in a statement on Tuesday that European supplies could be hit after his company refused to deliver 114 million cubic meters of natural gas requested by Naftogaz over the Ukrainian energy provider's alleged failure to pay in advance for supplies.

Miller said: "Ukraine has not made a timely pre-payment for gas. 

"Today, only 219 million cubic meters of prepaid gas is left and it takes about two days for funds from Naftogaz to transfer to Gazprom."

 'Serious risks'

"Therefore the delivery of gas to Ukraine in the requested daily amount of 114 million cubic meters will lead to a total halt of Russian gas deliveries to Ukraine in just two days, which poses serious risks for the transit of gas to Europe," he warned.

Russia, Europe's largest supplier of natural gas, supplies more than 50 percent of its gas exports to the European Union via Ukraine, from where pipelines enter Poland, Slovakia, Hungary, Romania and Moldova.

Miller's comments came as Naftogaz struggles to restore gas supplies to war-torn areas in eastern Ukraine.

Gazprom has also recently begun delivering directly to separatist-controlled areas of Ukraine under orders from Russian Prime Minister Dmitry Medvedev.

 'Breach of contract'

Naftogaz claimed in a press release on Monday that Gazprom had failed to properly deliver supplies and breached its contract.

Naftogaz stated: "Naftogaz ordered 114 million cubic meters in line with the Winter Package supply conditions, but Gazprom delivered only 47 million cubic meters.

"Notice of this breach of contract and of the Brussels Binding Protocol was sent today to the Cabinet of Ministers of Ukraine, the European Commission and the Energy Community Secretariat."

Naftogaz's latest order of 114 million cubic meters of gas per day was almost four times higher than its previous orders.

The company said last Thursday it had ordered 30 million cubic meters of gas and would soon order an additional 42 million cubic meters.