Russia has cut off gas supplies to Ukraine as a payment deadline passed and negotiators failed to reach a deal on gas prices and unpaid bills amid continued fighting in eastern Ukraine.

Companies from four European nations today signed an agreement with Russia’s natural gas monopoly Gazprom to be supplied by a new pipeline – a project that has raised concerns about increasing European dependence on Russian supplies.

Senior Belarusian energy officials held talks in Moscow this evening to seek an agreement on a new supply contract for Russian natural gas, hoping to avert a threatened New Year’s Day cut-off that could affect European deliveries, officials said.

Western Europe was warned that its supplies of gas could be hit if Russia carries out its threat to cut off fuel to Ukraine on New Year’s Day.