EU worried by Russian threat to cut Ukraine gas

BRUSSELS (Reuters) - The European Union said on Thursday it was concerned about Russia's warning that it could again halt gas deliveries to Ukraine -- and possibly to Europe -- over a payment dispute.

European Commission President Jose Manuel Barroso said the 27-nation EU's relations with the two countries could suffer if their dispute cut supplies of Russia's natural gas to the bloc, as they did at the beginning of the year.

"We are very concerned with the latest news from Ukraine and comments of (Russian) Prime Minister (Vladimir) Putin," Barroso told a news conference.

Putin warned that Moscow would halt gas deliveries to Ukraine if payment were not received by Saturday, and said this could also affect supplies to Europe.

Barroso said that if the gas stopped flowing, the EU would condemn the cutoff of supplies.

"The credibility of Russia and Ukraine will be of course affected if we have another gas crisis ... It would not help with the overall relations we have with Russia and Ukraine."

The Russian gas export monopoly Gazprom said it had received full payment from Ukraine's state energy firm Naftogaz for February gas deliveries, confirming an earlier statement by Naftogaz.

(Reporting by Marcin Grajewski, editing by Tim Pearce)