Ukraine started to cut the supply of Russian natural gas to Hungary at 1500 GMT Monday after it had informed the Hungarian government of its plans.

Ukraine had informed Hungary it intends to cut supply through the Ukrainian transit pipeline by 8 million cubic meters Monday, Csaba Molnar, Hungary's minister in charge of energy issues, said earlier in the day.

Hungary receives 38 mcm of Russian gas daily through Ukraine.

The lower volume won't result in supply disruption since Hungary has over 3 billion cubic meters of gas in storage and it a further 500 mcm as strategic reserves, Molnar said.

Hungary will receive information between 0800 and 0900 GMT Tuesday about Tuesday's supplies through Ukraine, Janos Zsuga, general manager of Hungarian oil and gas company MOL's (MOL.BU) gas transit company Foldgazszallito Zrt., told Hungarian state news agency MTI.

Foldgazszallito says natural gas demand will rise Monday to between 70 mcm and 72 mcm due to colder weather compared with Sunday's projected 66 mcm to 67 mcm.

Weather forecasts say Hungary will experience a severe cold spell later in the week, with temperatures dipping to around minus 15 degrees Celsius, which is likely to boost gas demand further.

Hungary gets some 80% of its natural gas imports from Russia through Ukraine.

Russia and Ukraine are in a disagreement over pricing and Russia halted deliveries to Ukraine Jan. 1. Ukraine is a key transit country for Russia for its lucrative gas trade with the European Union including Hungary.

Company Web site: www.fgsz.hu

-By Margit Feher and Edith Balazs, Dow Jones Newswires; +361-267-0622; margit.feher@dowjones.com

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