Europe's gas supply 'taken hostage'

The leaders of Russia and Ukraine were warned today to stop treating Europe’s gas supply as a “hostage” in their continuing dispute over unpaid bills.

European Commission President Jose Manuel Barroso hit out in phone conversations with Russian prime minister Vladimir Putin and his Ukrainian counterpart Yuliya Tymoshenko.

Mr Barroso, increasingly concerned at the impact of reduced supplies on EU member states, said he wanted an immediate resumption of full services and said the credibility of both Russia and Ukraine as “reliable” EU partners was now at stake.

The calls were made as seven EU countries suffered a total halt to gas supplies from Russia despite Mr Putin’s assurances that turning off the tap to Ukraine would not be allowed to hit European customers.

A Commission spokeswoman said: “President Barroso spoke to Mr Putin and Mr Tymoshenko this morning and urged them to restore full supplies to the EU immediately.

“President Barroso said it was unacceptable that the EU’s gas supply has been taken hostage in negotiations between Russia and Ukraine. He said their credibility as reliable partners with the EU is at stake and he insisted that Russia and Ukraine must find a stable, long-term solution to ensure the sustainability of gas supplies to the EU.”

Meanwhile EU energy Commissioner Andris Piebalgs is cutting short a trip to Prague to be back in Brussels tomorrow in time for talks with Gazprom chief executive Alexei Miller, who has also asked to see European Parliament President Hans-Gert Poettering.

But hopes are slim of a solution in Brussels to what the Commission has described as a “commercial” dispute over the fees charged to Ukraine for gas from Russia.

Attention is more centred on talks between Russia and Ukraine in Moscow tomorrow.