Russia-Ukraine gas talks to go on after Kiev makes payment

BERLIN, May 31 (AFP) : Kiev has sent a first gas payment to Moscow, paving the way for further talks next week to avert a Russian gas shutdown to Ukraine, negotiators said Friday.

"We don't have a final deal yet but we have made progress," EU Energy Commissioner Guenther Oettinger said after mediating between Russian Energy Minister Alexander Novak and his Ukrainian counterpart Yuriy Prodan, as well as the CEOs of both national energy companies.

The Berlin talks were the third Russia-Ukraine meeting aiming to resolve a bitter standoff between Moscow and its former Soviet satellite, held before a deadline next Tuesday when Russia had threatened to cut off gas to Ukraine.

Amid the Ukraine crisis, Russia's energy giant Gazprom has raised gas prices and demanded $5.17 billion (3.79 million euros) from the crisis-hit and cash-strapped country for past gas shipments and June deliveries.

Oettinger said Ukraine's Naftogaz had now reported transferring an initial payment of $786 million dollars via a New York bank to Gazprom for February and March debts, and that talks were set to continue in Brussels Monday after the money arrives.

"The Russian partners are ready to continue talks on this basis," Oettinger told a press conference.