Germany and the European Union are urging Russian giant Gazprom and Ukrainian gas player Naftohaz to settle their differences and comply with an arbitration ruling to normalise gas supply to Ukraine.

“It is in the interest of Germany and the European Union, and of Russia and Ukraine, that both these countries show themselves to be reliable partners in European gas supply and guarantee continuous supplies,” German government spokesman Steffen Seibert said in a briefing on Monday, according to Reuters.

German concern was heightened after a Stockholm arbitration court late last month ruled that Gazprom should pay Naftohaz $4.63 billion in compensation for neglecting its transit obligations, prompting Gazprom to cancel an agreed resumption of direct gas deliveries to Ukraine this month.

The net payment due from Gazprom is just over $2.5 billion after deducting payments for gas delivered in 2014 and 2015.

The February ruling said that Gazprom had ignored its obligation to pump a minimal annual amount of gas across Ukraine to Europe under its 10-year gas transit agreement that it signed with Naftohaz in January 2009.

Gazprom executive chairman Alexei Miller said last month that the company will immediately appeal in Stockholm to cancel both gas sales and gas transportation contracts with Naftohaz.

The gas monopoly later added that it will not halt the transit of Russian gas across Ukraine to the EU for now, as Miller’s words sent shockwaves across European countries, fearing interruptions of Russian gas deliveries amid fierce winter conditions.

Ukraine's pipeline operator Ukrtransgaz said last week that nonetheless, Gazprom reduced the gas pressure in the pipeline entering Ukraine by about 17% from the contractual level following Miller’s announcement.

The pressure drop meant Ukrtransgaz had to use more of its own gas to maintain the flow of Russian transit gas from the east to the west of the country, as Gazprom’s customers in Europe are asking for larger gas supplies to be able to cope with winter peak energy demand.

"This situation raises concerns not only for the direct supply of natural gas to Ukraine but possibly also for the transit of gas to the EU," the European Commission said, offering to steer a trilateral process to resolve the conflict.

"It is important that both Russia and Ukraine reaffirm their respective positions of a reliable supplier and transit country of gas, as was the case over the past years."

As for Ukraine's own gas needs, the country initially called on utilities and consumers to bring down home temperatures to save fuel.

It also turned to partners in Poland, Slovakia and Hungary to make up for the gas shortfall, after supplies from the three countries were halted earlier this year in anticipation of the start of direct gas deliveries from Russian gas monopoly Gazprom.

Ukraine’s President Pyotr Poroshenko praised Naftohaz’ partners in Poland, Slovakia and Hungary for their ability to answer the call for new supplies in less than 24 hours as Ukraine was hit by snow storms and temperatures of minus-15 degrees Celcius.

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Gazprom and Naftohaz urged to cease gas spat