New ultimatum issued in gas suppy row

The European Commission today threatened a “point-by-point” rethink of its relations with Russia and Ukraine unless the gas supply crisis is revolved this weekend.

The latest ultimatum came as EU-led monitors reported no sign of resuming the flow of gas to EU countries four days after an EU-Russia-Ukraine agreement to reopen the gas taps.

European Commission President Jose Manuel Barroso, and Czech premier Mirek Topolanek – in the EU presidency – have both refused to be “summoned to Moscow”, in the words of one senior Commission official.

Instead EU energy Commissioner Piebalgs and the Czech industry minister will be there – on condition that Ukraine is represented as well as Russia.

But there was no obvious solution in sight today, prompting Mr Barroso’s spokesman Johannes Laitenberger to hint at possible sanctions against both countries if the situation – which has badly hit gas supplies to several EU countries in the midst of winter – continues.

“If there is no solution this weekend, the seriousness of the situation goes beyond the specific situation of gas, and clearly if gas does not flow again we will have to look point by point at our relationship with Russia and Ukraine and whether we can continue to do business as usual under these circumstances.” warned Mr Laitenberger.

One Commission official later confirmed that meant a detailed assessment of each aspect of the EU’s links with Russia and Ukraine, from trade and energy to general bilateral relations and partnership and cooperation agreements. In addition, Ukraine is bidding in the longer term for EU membership, and does not want to rock the boat in its relations with Brussels.

Lat night Russian Prime Minister Vladimir Putin urged Europe’s gas companies to help pay to get supplies back on track – a bizarre idea greeted with puzzlement at EU headquarters.

The stumbling block remained who should pay for the “technical gas” required to power the compressors to pump Europe’s gas through the pipeline system. Ukraine wants Russia to provide the gas, which Moscow say is “absurd”.

So the Putin plan is for a consortium of European companies to club together to pay for the necessary technical gas.

Today Mr Laitenberger politely acknowledged that all ideas to resolve the crisis were helpful – but behind the scenes officials were amazed that Russia should suggest that the EU should fork out to provide the means to pump heating fuel gas to hard-hit households and business.

“Next they’ll be asking us to pump the gas and pay for the pipelines” said one EU diplomat.