UpdateEU mulls three-way summit on Ukraine gas crisis

(Recasts lead and adds details throughout)

PARIS (ICIS news)--The EU has not ruled out holding a three-way summit with Russia and Ukraine to find a solution to the gas supply crisis, Czech presidency of the EU and the European Comission said on Tuesday.

The reduction in gas supplies to the EU from Russia was called "unacceptable", with the Commission demanding that Moscow restore them immediately.

The Commission said the cut in supplies to some member states was “without prior warning and in clear contradiction with the reassurances given by the highest Russian and Ukrainian authorities”.

It demanded that gas supplies be “immediately restored to the EU and that the two parties resume at once negotiations with a view to a definitive settlement of their bilateral commercial dispute”.

“Together with [European Commission chief Jose Manuel] Barroso we spoke of the extreme option which would be a summit," said Czech Prime Minister Mirek Topolanek.

“Negotiations may take place at the top level, maybe with the [EU] presidency and the two head of states,” he added.

Romania, Bulgaria, Greece, Turkey, Macedonia, Slovakia, Slovenia, Hungary, Austria, Italy and Poland all suffered reductions in supply early this morning when Russia ordered a reduction in gas flow to Europe via Ukraine.

Bulgarian fertilizer producers Neochim and Agropolychim were forced to halt production after its gas supplies were cut, according to a report on news agency Reuters. There were also reports of fertilizer producers being affected in Poland.  

The EU receives about one quarter of its gas from Russia, and 80% of this flows through Ukraine.

With Ukraine and Russia still locked in a deepening dispute over alleged unpaid Ukrainian gas debts of around $2bn (€1.5bn), Tuesday saw Russian gas supplies via the Ukraine to the Balkans, Turkey and Southeastern Europe halted and supplies to Austria dropping by 90%.

Ukraine and Russia blamed each other for the reduced flows.

EU energy commissioner Andris Piebalgs discussed the situation with the Russian state energy company Gazprom and the Ukrainian government by phone earlier on Tuesday, said an EC spokesman.

He also confirmed that the EU gas coordination group would meet on Friday, and that Gazprom and the Ukrainian state gas firm Naftogaz had been invited to the meeting.

He said the group may debate whether solidarity measures should be taken to help those member states most affected by the gas shortage.

“At the moment there are no immediate dangers,” said the spokesman, adding that countries “can do things to reduce the consumption of gas by industry to ensure supply to consumers”.

The Commission refused to speculate on the political consequences if supplies were not restored.

($1 = €0.74) 

Will Conroy contributed to this article
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