Putin warns EU leaders on gas supplies, Ukraine economy

MOSCOW, Russia – President Vladimir Putin on April 10, Thursday, sent a letter to leaders of 18 European countries, warning them Russia could cut gas supplies to Ukraine, but suggesting that Moscow and Brussels work together to help restore the ex-Soviet country’s battered economy.

If Ukraine does not settle its 1.6 billion euro energy bill, natural gas giant Gazprom would be “compelled to switch over to advance payment for gas deliveries, and in the event of further violation of the conditions of payment, will completely or partially cease gas deliveries,” Putin wrote in the letter.

But in what might be an overture to de-escalate the crisis, Putin also said that “Russia is prepared to participate in the effort to stabilize and restore Ukraine’s economy” — but only on “equal terms” with the EU.

Any such approach would have to take into account Russia’s investment in Ukraine over past years, he stressed.

The missive, whose contents were released by the Kremlin, was sent to the heads of 18 European countries that receive Russian gas and may be affected by a cut in Russian supplies via Ukraine.

The letter was sent to the leaders of France, Germany, Poland, Greece, Serbia, Austria, Croatia, Slovenia, Bulgaria and Italy.

Also on the list of the recipients were Moldova, Romania, Turkey, Hungary, the Slovak Republic, Macedonia, the Czech Republic and Bosnia and Herzegovina.

‘Dialogue mechanism’

“These are the countries that receive Russian gas,” Putin’s spokesman Dmitry Peskov told Agence France-Presse.

“The letter proposes the establishment of a dialogue mechanism. Let us hope that it will be formed and start working,” he said.

Putin said any cut in gas supplies would be an “extreme measure,” urging the EU countries to immediately hold talks at the level of ministers of economics, finances and energy.

“We must lose no time in beginning to coordinate concrete steps,” he said.

In his letter, Putin delivered a rebuke to the European Union, saying Brussels used Ukraine only as a source of mineral resources and has not helped the struggling ex-Soviet country financially.

In contrast, he said, Russia has over the past four years has been subsidising Ukraine’s economy by discounting natural gas prices to the tune of more than 25 billion euros.

“What about the European partners?” he said. “Instead of offering Ukraine real support, there is talk about a declaration of intent. There are only promises that are not backed up by any real actions.”

The appeal comes after Putin during a government meeting on Wednesday warned that Russia may begin requiring advance payment for natural gas from Ukraine.

Earlier this month, Gazprom announced it was raising the price of gas exports to Ukraine by more than a third, scrapping a previous discount amid soaring political tensions between the two ex-Soviet countries.

Ukraine now has to pay $485 dollars per 1,000 cubic metres of gas, the highest price of any of Gazprom’s clients in Europe.

End-of-year haggling over energy prices has become a familiar problem in ties between Russia and Ukraine, with Moscow cutting natural gas to Ukraine and disrupting transit supplies to Europe in the past.

Ukraine maintains that Russia is punishing it for its Western ambitions and has threatened to take Moscow to court. – Rappler.com