Russia warns EU on gas and berates Nato over Ukraine

Moscow has warned that EU gas deliveries could be threatened if it cuts supplies to cash-strapped Ukraine, and accused Nato of issuing false information and using cold war-style rhetoric to fan fears of Russia.

Relations between Russia and the West continued to deteriorate as pro-Kremlin protesters showed no sign of leaving occupied buildings in two eastern Ukrainian cities before this morning’s government deadline, and EU states suggested sending a police and justice mission to Ukraine.

In a letter to 18 EU leaders, Russian president Vladimir Putin complained that his country had propped up Ukraine with tens of billions of euro of fuel subsidies in recent years but had now lost patience with its failure to pay a gas bill of $2.2 billion (€1.6 billion).

He said Russia was now contractually permitted to “switch over to advance payment for gas deliveries, and in the event of further violation of the conditions of payment . . . completely or partially cease gas deliveries”.

“Undoubtedly, this is an extreme measure. We fully realise that this increases the risk of siphoning off natural gas passing through Ukraine’s territory and heading to European consumers.”

Mr Putin said that this could also prevent Ukraine storing enough gas for next winter, and that about $5 billion must be paid soon “to guarantee uninterrupted transit”.

Calling for Russian and EU ministers to meet urgently to discuss “concerted actions to stabilise Ukraine’s economy”, Mr Putin said Moscow “cannot and should not unilaterally bear the burden of supporting” Ukraine but would help “on equal conditions with our European partners”.

Russia is regularly accused of using energy supplies for political purposes, giving discounts to allies and raising prices for less amendable neighbours.

It slashed Ukraine's gas price for then president Viktor Yanukovich last December when he rejected closer ties with the EU and turned to Moscow for support. He was ousted in February, and Russia has since hiked Kiev's gas bill by some 80 per cent.

Ukraine’s pro-western government refuses to pay the new price and is seeking supplies from the EU; Moscow says resale of Russian gas from the EU to Ukraine would be illegal.

Russia’s grip on the EU energy market makes many members wary of angering the Kremlin, and it is seen as blunting their response to its annexation of Crimea last month; Russia provides about half of Ukraine’s gas and supplies the EU with about one-third of its needs, 40 per cent of which is pumped across Ukraine.

Satellite images
Moscow also railed against Nato yesterday, after it released satellite images that allegedly showed a large combat-ready force near Ukraine's border.

An unnamed representative of Moscow’s military general staff told Russian state media that the pictures were actually taken last summer.

Russia’s foreign ministry also accused Nato of demonising it and seeking “to use the crisis in Ukraine to close its ranks against an imaginary threat to Nato member states to strengthen demand for the alliance in the 21st century”.

Britain, Poland and Sweden yesterday proposed sending an EU civilian mission to Ukraine to help rebuild its demoralised and corruption-riddled police and justice system.

In the eastern Ukrainian cities of Donetsk and Luhansk, pro-Moscow protesters occupying state buildings rejected Kiev’s offer of an amnesty and vowed to stay inside until the government agreed to a referendum on whether eastern regions should receive more autonomy or join Russia.

On Wednesday morning, interior minister Arsen Avakov gave the protesters 48 hours to leave Donetsk’s local government administration and Luhansk’s security service headquarters or face forcible eviction. Some of the activists say they have firearms and will not surrender.