European Union countries may sue Russia and Ukraine unless the two countries quickly restore natural gas supplies, the European Commission's president said today.
Russia began pumping gas meant for Europe via Ukraine yesterday for the first time in nearly a week. But the EU, which gets a quarter of all its gas from Russia, said little or no gas was flowing to countries suffering urgent energy shortages.
Russia accused Ukraine of shutting off gas to Europe, but Kiev said there was not enough pressure in the pipeline system. The crisis has disrupted supplies to some 18 countries at the height of winter, shutting down dozens of factories in southeast Europe.
Speaking at the European Parliament, Jose Manuel Barroso also said that unless gas started flowing soon he would advise the EU’s 27 member states to take measures to secure alternative long-term suppliers of energy.
"I would like to convey a very clear message to Moscow and Kiev. If the agreement sponsored by the EU is not honoured as a matter of urgency, the Commission will advise EU companies to take this matter to the courts," he said.
A dispute over gas between Moscow and Kiev has cut supplies of the fuel to European countries via Ukraine. The gas has yet to start flowing again despite a recent agreement on transit brokered by the EU.
"The current situation is in short most unacceptable and incredible," Mr Barroso said during a debate on the EU's programme for the first half of 2009. "If the agreement is not honoured, it means that Russia and Ukraine can no longer be regarded as reliable."
Two of the worst-hit EU states, Bulgaria and Slovakia, are sending their prime ministers to Moscow and Kiev today in fresh efforts to get gas supplies restored. Bulgaria's Sergei Stanishev and Slovakia's Robert Fico were due to meet Russian prime minister Vladimir Putin in Moscow and Ukrainian prime minister Yulia Tymoshenko in Kiev.
Mr Stanishev is under pressure to secure supplies for his country of 7.6 million people as limited domestic reserves are dwindling and anger among Bulgarians is mounting against his Socialist-led government.
Slovakia, which has a population of 5.4 million and gets almost all its gas from Russia, declared a state of emergency on January 6th, under which gas deliveries to large clients were reduced. About 1,000 companies were forced to shut or cut production.
The Russian state-controlled gas monopoly Gazprom.declared force majeure on gas exports to Europe, meaning circumstances beyond its control prevented it from meeting its obligations to clients.
Ukraine told the EU there were "technical difficulties" in that the pressure of gas from Russia was too low.
Gazprom is demanding Kiev hand over
€450 million
for unpaid gas bills and pay about €330 per 1,000 cubic metres of gas in 2009. That is similar to rates paid by EU customers but a big rise on last year's price of about €130.
Analysts in Kiev say Ukraine, saddled with debt and hard hit by the global slowdown, cannot afford that price.