Russia/Ukraine/EU

Moscow stops gas supply, as Europe says it's a hostage

Article published on the 2009-01-07 Latest update 2009-01-07 15:05 TU

Gazprom's deputy Chief Executive Alexander Medvedev (R) before talks with German Economy and Technology Minister Michael Glos (L) in Berlin
(Photo: Reuters)

As at least 11 European states say that their supply of Russian gas has completely halted, Russian Prime Minister Vladimir Putin has ordered the Gazprom company to stop all supplies via Ukraine. The company accused Kiev of stealing gas on Tuesday in the row over non-payment of bills for 2008.

After accepting Gazprom boss Alexei Miller's claim that Ukraine Tuesday stole 21 million cubic metres of gas intended for Europe, Putin agreed "to end deliveries of gas at the Russian-Ukrainian border in conditions where Ukraine carries out the theft of Russian gas", adding that the cut-off should be done "as publicly as possible with the presence of international observers".

Ukraine claims that it needs to take some gas for technical reasons.

The European Commission declared on Wednesday that it is ready to send observers to Ukraine to measure how much gas is getting through, as at least 11 countries, including Austria, Slovakia and the Czech Republic, which currently holds the EU presidency.

The Ukrainians say that their Prime Minister Yulia Tymoshenko has agreed to "immediately" allow observers in.

In Prague, Czech Prime Minister Mirek Topolanek said that Moscow has pledged to restart supplies as soon as observers arrive.

And the Commission slammed both countries for affecting the gas supply of 17 countries as temperatures fall as low as -25°C (-13°F) in some areas.

"It is unacceptable that the EU's gas supply security is being taken hostage to negotiations between Russia and Ukraine," a Commission official said in Brussels.

Top officials from Gazprom and Ukraine's Naftogaz are due in Brussels on Thursday to meet EU officials.

Moscow correspondent Luke Harding says there will be talks in the Russian capital tomorrow, too, but is not optimistic about their outcome.

"Tomorrow the head of the Ukrainian state energy company, the head of Naftogaz, is travelling to Moscow to try and get a deal," he told RFI. "But, really, I think we can see this crisis going on for several days yet."

French energy expert Gilles Rémy says that Ukraine is both politically and economically bankrupt and that the current crisis was nearly avoided.

"Last November we were very close to an agreement between Kiev and Moscow," he told RFI's French service. "But because of disagreements inside the [Ukrainian] government, the price of gas has been taken hostage, has served as a scapegoat, in a way, between the President and the Prime Minister, who were unable to agree on relations with Russia."