Russia-Ukraine gas war deadlock
2009-01-15

Nations Russia Slovakia Hungary Ukraine City Moscow Category Regions Regions Europe Pacific Rim People Vladimir Putin Event 2008 Russia Gas Dispute Source (AFP)

MOSCOW (AFP) - Russia and Ukraine remained deadlocked in their energy war Thursday with European governments becoming increasing angry and exasperated over the dispute.

More than two weeks after cutting off supplies to Ukraine, Russian Prime Minister Vladimir Putin suggested an international takeover of the Ukrainian gas transit network to Europe.

In an interview with German television ahead of a visit to Berlin, Putin recommended setting up "an international consortium that would rent Ukraine's gas pipelines and maybe even take part in privatising it if Ukraine wishes."

He added however Ukraine would probably not be persuaded to sell its transit system, which he described as a Ukrainian "fetish."

Ukrainian Prime Minister Yulia Tymoshenko's office said a meeting with Russia to try to resolve the crisis had been arranged for Saturday after she spoke by phone with Putin, although who would participate was unclear.

The European Union meanwhile weighed a Russian proposal for a summit of European consumers and natural gas shippers on Saturday having expressed growing anger at the gas crisis.

Many East European nations have imposed rationing on industrial gas users and communal heating has been reduced level in impoverished Moldova.

Ukrainian President Viktor Yushchenko has insisted any gas summit take place on neutral territory.

There is growing pessimism over the dispute, which erupted over Russian accusations that Ukraine had not paid for gas or had siphoned off supplies intended for the rest of Europe.

Russian business paper Vedomosti declared: "Russia and Ukraine didn't move one step closer to compromise." Popular tabloid Komsomolskaya Pravda said, "The lengthy Russian-Ukrainian gas conflict has already turned into a real war."

European countries are looking for alternative energy with Hungary saying it was ready to provide gas or electricity to badly hit Slovakia.

The Slovakia government has warned it faces a complete electricity blackout in a week if it receives no Russian gas and has threatened to restart a nuclear power station it closed in 2004.

As the gas crisis entered a third week, the EU's Czech presidency warned Russia and Ukraine of "political consequences" for relations with the EU.

"The time is expiring and we need to have results," said Czech Deputy Prime Minister Alexandr Vondra.

"If we do not have results, it will inevitably have political consequences on our relations with both countries," he added without elaborating.

EU Commission president Jose Manuel Barroso said Wednesday that the crisis was "unacceptable and incredible."

While the two sides appeared far from resolution, Ukraine's Tymoshenko signalled willingness to move forward in talks, saying: "The process of negotiations must move from the Gazprom-Naftogaz level to the level of governments."

The deadlock has centred on Ukraine's insistance that it cannot switch its transit system back to shipping Russian gas to the EU without a fully fledged solution, as it has reoriented the system to ship stored gas in western Ukraine to industries in the east.

Russia has rejected such arguments, accusing Ukraine of stealing gas when it attempted to restart deliveries twice this week.

The Russian newspaper Kommersant lent support to Ukraine's arguments, quoting one expert as saying that restarting deliveries through just one entry point into the Ukrainian system was unworkable.

"The Ukrainian system is part of the unified gas supply system of the Soviet Union. The Russian and the Ukrainian parts can work only in synchronised and coordinated fashion. The gas pipeline system is complicated and demands a balance of supplies through all terminals," energy expert Mikhail Korchemkin told the paper.

The EU relies on Russian gas pumped via Ukraine for a fifth of its supplies.