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Turning off: Russia warns of gas supply cut to EU on delayed payments from Ukraine.

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Moscow warns EU of gas cut

Russia has warned of possible disruption to natural gas supplies to European consumers because of problems with main transit nation Ukraine over energy payments, the Swedish government has said.

"Swedish Prime Minister Fredrik Reinfeldt, representing the Swedish Presidency, spoke on the telephone with Russian Prime Minister Vladimir Putin this evening about the fact that Ukraine risks not being able to meet its payment commitments to the company Gazprom," European Union president Sweden said late yesterday.

"Prime Minister Reinfeldt stated that both the Swedish and the Czech Presidency had followed this issue closely and that we will continue to do so," the Reuters reported citing a statement from Sweden.

Quoting Putin's press service, Russia's Interfax news agency said during the telephone talk that "Putin drew the attention of the EU leadership to signals, including those received via official channels from Kiev, of possible problems with payments for Russian gas supplies".

"As Putin stressed, as a result of all this, 'problems with Russian gas transits across Ukraine's territory aimed for European consumers could arise'."

Russia cut gas supplies to western Europe via Ukraine in January 2006 and again in January this year during disputes with the former Soviet republic over gas prices and payments. Supplies to EU customers were disrupted in the middle of winter.

Last Friday, in a telephone talk with Ukrainian counterpart Yulia Tymoshenko, Putin accused Ukrainian President Viktor Yushchenko of risking provoking a new gas crisis in Europe.

Tymoshenko is Yushchenko's main political foe and a frontrunner for a 17 January presidential election.

Diplomats have said Russia may be wary of entering a new gas dispute with Kiev on the eve of the vote, which Moscow hopes will bring a more pro-Russian president to power, Reuters reported.

Ukraine's deep economic crisis has raised fears about its ability to pay for Russian gas.

"In the conversation the issue of Nord Stream was also discussed. Mr Reinfeldt pointed out that a judicial review is under way and has not yet been completed," Sweden's statement said.

The Nord Stream pipeline, which will deliver 55 billion cubic metres of gas per year from Russia to Germany via the Baltic Sea, requires construction permits from Russia, Finland, Sweden, Denmark and Germany.

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