KIEV, Nov. 15 - UkrGazVydobuvannya, Ukraine??™s biggest natural gas producer, warned Wednesday it would dramatically reduce natural gas output next year it Parliament increases royalties on gas extraction as the government has suggested.

UGV warned it would have to pay 1.86 billion hryvnias ($368 million) in royalties and geological survey fee in 2007, which is 569 million hryvnias ($112.6 million) more than in 2006.