Diplomats hope to avoid repeat of gas supplies dispute

Senior EU diplomats were holding emergency talks on the Russian gas dispute this afternoon as concern grew about dwindling supplies to a clutch of mid-European member states.

Moscow’s decision to cut supplies to Ukraine in a dispute over prices has had a knock-on effect on Russian gas reaching Hungary, Poland, Romania, and the Czech Republic, which took over the EU presidency on January 1.

Today’s meeting in Brussels is designed to assess the full impact of the shortages as winter bites in the EU countries directly affected.

The problem is a repeat of gas pipeline disruptions to EU supplies three years ago in a similar wrangle between Russian and Ukraine.

The row triggered a major review of EU energy security policy, but the EU still depends on Russia for about 25% of its total gas supplies – and, coincidentally, EU foreign ministers already have the issue on their agenda again later this week at informal talks in Prague.

Last week’s decision by Russian gas monopoly Gazprom to cut off supplies to Ukraine prompted the European Commission and the Czech EU presidency to urge swift resolution of what a statement called a “commercial dispute”.

The ambassadors’ meeting in Brussels will now have to consider what steps the EU can take in the face of continued supply problems.

“The meeting will be receiving updated reports from the member states affected by shortages, to see how bad the problem is and to consider what any next steps” said an EU official.

Washington has called on Russia to consider the humanitarian implications of disrupting gas supplies in winter to countries facing freezing conditions.

And the problem could extend further into the EU: in January 2006, Germany and Italy felt the impact of Russia turning off the gas tap to Ukraine.

The issue is the first test of the Czech government’s diplomatic skills on behalf of the 27 EU countries, but deputy Prime Minister Alexandr Vondra’s insistence that Russia honours all existing gas supply and transit agreements has so far had little impact.

The dispute is over Ukraine’s refusal to pay a price hike demanded by Russia even though oil prices have been falling.

Since the last row between the two, EU countries have been building up gas storage facilities, and Russia in any case insists it has increased supplies to European customers. Prime Minister Vladimir Putin has also emphasised that any disruptions in the EU would be the fault of Ukraine.