MOSCOW -- Russia's state gas monopoly OAO Gazprom said it has ended its reductions in supplies of natural gas to Ukraine after the two countries' presidents helped reach an agreement aimed at resolving a debt and contract dispute.

"The restrictions on deliveries for Ukrainian consumers have been lifted," Gazprom said in a joint statement with the Ukrainian gas company Naftogaz.

The agreement came after telephone negotiations involving Russian President Vladimir Putin, Ukrainian President Viktor Yushchenko and the heads of Gazprom and Naftogaz. The statement also said that transit of Russian gas across Ukraine to Europe continues in full.

The statement said gas supplied to Ukraine in January and February would be paid for by Naftogaz in accordance with the arrangement that was in place as of the beginning of the year. It said talks on other aspects of the gas trade between the two countries would continue.

Gazprom cut deliveries to Ukraine by 25% on Monday and another 25% Tuesday, claiming Ukraine owed it $600 million for gas delivered this year.

The dispute renewed concerns in Europe about the security of its crucial supplies of gas from Russia, much of which crosses through Ukraine on its way west.

Gazprom had said that supplies to Europe wouldn't be affected by the dispute, but a three-day Gazprom cut-off to Ukraine in 2006 amid a bitter standoff over prices resulted in a reduction of deliveries downstream.

This year's dispute came with relations between Russia and Ukraine strained over the pro-Western Ukrainian leader's drive toward NATO membership, and amid tension within Ukraine's government.

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