Tough talking: Gazprom boss Alexei Miller (left) speaks with Slovakian Prime Minister Robert Fico (centre) and his Bulgarian counterpart Sergei Stanishev (right)
EU duo beg Moscow for gas
Russia and Ukraine wrangled over gas supplies again today and two European Union states, Slovakia and Bulgaria, who have been without fuel for a week, launched missions to plead for Russian gas flow to be restored.
Russia's President Dmitry Medvedev proposed today to hold a summit of European Union's importers of Russian gas in Moscow on 17 January to discuss the situation with Russian gas supplies via Ukraine.
The Kremlin's press-service said Russia was also proposing to invite Ukraine to participate in the summit.
European Commission chief Jose Manuel Barroso called the crisis "unacceptable and incredible" and said the EU executive would advise the bloc's companies to sue Russian gas giant Gazprom and Ukraine's Naftogaz unless gas supplies were restored quickly.
Russia began pumping gas meant for Europe via Ukraine on Tuesday, but the EU said little or none was flowing yet to countries downstream suffering urgent energy shortages.
Russia accused Ukraine of deliberately cutting gas to Europe, but Kiev said Russia had so far provided so little gas there was not enough pressure in the pipelines to pump it on.
Each side tried to persuade their customers to the West that the other was to blame for the crisis.
"It is not our problem. It is the problem of the transit country and they must solve it," Reuters quoted Russian Prime Minister Vladimir Putin telling the premiers of Slovakia, Bulgaria and Moldova, all badly hit by the cut in gas supplies, at his residence outside Moscow.
"In my view, European officials could do more to put pressure on the transit country to ensure European interests," Putin said earlier.
The talks appeared to produce a glimmer of hope at least for Slovakia, acording to Gazprom boss Alexei Miller.
Russia could supply some gas for Ukraine's domestic needs if it agreed to send Slovakia equivalent volumes, he said. For technical reasons, Gazprom could not do the same with Bulgaria, where temperatures plunged as low as minus 21 Celsius this week.
Bulgarian Prime Minister Sergei Stanishev told Putin: "The biggest risk for both Russia and Ukraine is the issue of trust. The dispute has been running for a few years but it should not turn third countries into hostages."
Kiev portrayed Moscow as the villain. "It is time for the European Commission to ask Russia clearly why it is committing such acts," Ukrainian Fuel & Energy Minister Yuri Prodan said.
"Either Russia wants to supply gas to Europe or it intends to keep repeating such acts. All legal responsibility lies with the Russian side - particularly as regards European consumers."
Ukrainian Prime Minister Yulia Tymoshenko told a news conference talks with Russia should be conducted at government level rather than between the two countries' gas companies.
The crisis has hit 18 countries in the depths of winter, shutting down factories and leaving householders shivering.
"If the agreement sponsored by the EU is not honoured, the Commission will advise EU companies to take this matter to the courts," Barroso told the European Parliament.
"The current situation is in short most unacceptable and incredible," he said. "If the agreement is not honoured, it means Russia and Ukraine can no longer be regarded as reliable."
The gas row reflects poor political relations between Russia and Ukraine. Moscow is vehemently opposed to moves by Ukraine's pro-Western leadership to join the US-led Nato alliance.
Slovakian Prime Minister Robert Fico said his country had 11 days of gas reserves left.
"After 12 days, we will be obliged to resort to measures never seen in our history. May I simply ask how long this will go on?" he asked Ukraine's Tymoshenko while visiting Kiev.
Slovakian officials said later, however, they had secured new supplies to cover consumption until the end of January.
Slovakia, which gets almost all its gas from Russia, declared a state of emergency on 6 January, under which gas deliveries to large clients were reduced. About 1000 companies were forced to shut down or cut production.
The Slovakian government said Fico had stressed Ukraine's responsibility for the crisis and said it had "negatively affected Ukraine's credibility". Tymoshenko replied that Ukraine was "the same hostage in the dispute as the European Union".
A deal brokered by the EU, which gets a quarter of its gas from Russia, was supposed to get supplies moving on Tuesday, with international monitors in place to ensure that Ukraine was not siphoning off any gas, as Moscow has alleged.
Russian President Dmitry Medvedev said Gazprom had lost $1.1 billion from the fall in exports to Europe caused by the row.
"Our country cannot lose such money. The time for presents is over," Medvedev said on state television.
Gazprom is demanding Kiev hand over $614 million for unpaid gas bills and pay $450 per 1000 cubic metres of gas in 2009. That is similar to rates paid by EU customers but a big rise on last year's price of $179.5 per Mcm.
Analysts in Kiev say Ukraine, saddled with debt and hard hit by the global slowdown, cannot afford that price.
The Ukrainian state energy company Naftogaz today declined a request by Gazprom to supply almost 100 million cubic metres to the Balkans and Moldova, proposing alternative routes.
Ukraine said it asked the European Commission to help it get from Russia the "technical gas" needed to pump supplies.
Mirek Topolanek, Czech prime minister and current EU president, said "technical gas" was often used as a pretext for not making deliveries. "This must be stopped," he added.