MOSCOW, Dec 28 (Reuters) - Russian energy giant Gazprom

said on Saturday it would suspend gas exports to

Moldova from 0500 GMT on January 1 due to unpaid debt by

Moldova.

It said the company reserved the right to take any action,

including terminating the supply contract with Moldova.

The supply suspension is a precursor for a total shutdown of

Russian gas exports via Ukraine and to Europe, where it flows

further to Slovakia, Austria, Hungary and Italy, once the

current transit deal with Ukraine expires on Dec. 31.

Russia supplies Moldova with about 2 billion cubic

metres of gas per year through Ukraine. This is piped to the

breakaway region of Transdniestria which uses the gas to

generate cheap power, which it sells on to the rest of Moldova.

Moldova's population of 2.5 million has been preparing

for long power cuts since Kyiv said it

will not extend

its transit contract with Gazprom.