Putin warns of new European gas crisis

HELSINKI: Russian gas supplies to Europe through Ukraine could come to a grinding halt soon due to crisis-ridden Kiev’s payment arrears, Russian Prime Minister Vladimir Putin warned on Wednesday.

“This could happen in late June or early July — a full stop to our transit” across Ukraine, Putin told a press conference in Helsinki.

“No one in Russia is taking pleasure or gloating at Ukraine’s difficulties in paying for the product it receives from us. But it must pay,” the powerful Russian Prime Minister told reporters.

Speaking during a visit to EU member Finland, Putin complained that Europe had rebuffed Russian requests to help Ukraine pay for its gas needs.

“We are proposing to solve the problem with the European Commission. But our efforts to approach the commission about this have not been successful. There is only one answer (from them) — we have no money for Ukraine,” Putin said.

Under the contract that governs Russian gas deliveries to Ukraine, Russian state energy giant Gazprom has the right to start demanding pre-payment from Kiev if any payments do not arrive on time, Putin said.

After that, if Ukraine misses the deadline for one of its advance payments, Russia will cut off the gas to its southern neighbour, he said.

In recent weeks Russia has warned repeatedly that crisis-battered Ukraine would have difficulties paying its gas bills, but Kiev has denied the claims and insisted that it has the funds. Thursday, AFP