Losses of Russian state-owned Gazprom have escalated to $1.1 billion due to halt in gas exports to Europe through Ukraine, the President Dmitry Medvedev said, according to Russian agencies Wednesday.

The report follows an announcement Sunday from Prime Minister Vladimir Putin who said the tensions over gas supplies between Russia and Ukraine had caused Gazprom a loss of $800 million.

The conflict worsened Wednesday when Ukraine's Naftogaz declined a request from Gazprom to supply 100 million cubic meters of gas through its pipelines to the Balkans and Moldova.

Russia Ukraine Dmitry Medvedev Vladimir putin