RUSSIAN PRIME minister Vladimir Putin pushed the idea of a consortium to underwrite gas exports through Ukraine during talks in Berlin yesterday with German chancellor Angela Merkel and energy company bosses.
Mr Putin said he was hopeful its dispute with Ukraine could be resolved at a summit in Moscow this morning; the European Commission called the meeting the “last chance” before it reviews relations with Russia and Ukraine.
“I don’t think we should look for who is to blame, we should look at the situation from the practical, economic and technical viewpoints and think about people who are suffering today,” said Mr Putin.
Frustration is growing around Europe for gas to start flowing again as promised by a deal signed on Tuesday. But to build sufficient pipeline pressure to get pumping stations working again, Kiev has called for a supply of so-called “technical gas”.
Russia wants to be paid for this gas and Mr Putin said he was confident a consortium to “share risks and supply technical gas” could be put together “reasonably quickly”.
An executive from Russian gas giant Gazprom told the Berlin meeting that it was prepared to sell the “technical gas” at market rates of $450 per 1,000 cubic metres. It was calculated that the consortium would have to invest $162 million in January and $270 million each in February and March.
Italian gas company ENI said it would examine the proposal with European counterparts as European leaders piled on the diplomatic pressure.
Ms Merkel spoke to Ukrainian politicians on Thursday ahead of her meeting with Mr Putin, making clear that Berlin views both sides as being in breach of contract.
“There is a danger that Russia to a certain extent loses its reliability if we see very long interruptions in gas deliveries,” said Dr Merkel.
In Brussels, the spokesman for European Commission president Jose Manuel Barroso described today’s summit as a “test case”.
“The European Commission believes that meetings in the coming days offer the last and best chance for Russia and Ukraine to demonstrate they are serious about resolving this dispute,” said Mr Johannes Laitenberger.
“The gas must flow. We will regard this period as a test case for judging whether or not they are credible partners.” The European Union imports a quarter of its gas from Russia, 80 per cent of which passes through Ukraine.
Mr Putin said the stand-off underlined the case for the planned pipeline under the Baltic Sea that will connect Germany and Russia directly. Without the Nord Stream pipeline, Mr Putin said, “there will be less gas and it will be more expensive”.
After talks in Berlin, Mr Putin was given an honorary state award in Dresden. On his last visit to the Saxon state capital 18 months ago, days after the murder of journalist Anna Politkovskaya, Mr Putin was greeted by crowds chanting “murderer”!