Russia, Ukraine trade blame as gas deal falters at final hurdle

Russia refused to restart gas exports to the European Union via Ukraine last night, after accusing Kiev of making unacceptable changes to a deal to end a crisis that has left much of the Balkans shivering.

Russia and Ukraine signed an agreement with the EU at the weekend to resume gas supplies to the bloc, under the supervision of international monitors who would ensure smooth delivery of the fuel to Europe.

But after complaining for most of yesterday that they had not received a copy of the deal signed by Ukraine, Russia's leaders said last night that, when it finally arrived in Moscow, it came with a note containing "additions" by Kiev that the Kremlin could not accept.

"I can only call such stipulations and additions a mockery of common sense and violation of earlier agreements," said President Dmitry Medvedev.

"In essence, these actions are intended to break existing agreements on monitoring gas transit and are clearly provocative and destructive in character . . . I therefore order the government not to implement the document signed yesterday." In a telephone call, Russian prime minister Vladimir Putin suggested to European Commission president José Manuel Barroso that officials from Moscow fly to Brussels for talks today.

EU energy ministers already planned to meet today to seek ways to avoid a repeat of the current crisis, and were expected to discuss how to diversify the bloc's energy supply away from Russia.

"Our view is that this declaration changes nothing in terms of the deal," said European Commission spokesman Ferran Tarrabellas last night. Russian gas supplies through Ukraine "should therefore recommence as planned as soon as possible." The gas deal was brokered by Miroslav Topolanek, prime minister of the Czech Republic, which currently holds the EU presidency.

A Czech energy official who was part of his delegation in Kiev and Moscow immediately rejected Moscow's claims about the agreement.

"It wasn't changed a single bit by the Ukrainian side," said Vaclav Bartuska. "[Ukraine] issued a declaration, but it's not part of the protocol signed in Moscow." Reuters reported that this declaration stated that Ukraine had not siphoned off any gas from EU-bound exports and did not owe any money to Gazprom - claims that Russia rejects.

Earlier yesterday, the EU had urged Moscow to resume gas supplies immediately, and said international monitors were at, or on their way to, key facilities on gas export routes in Russia and Ukraine.

Gazprom cut gas for Ukrainian consumption on New Year's Day over the country's alleged fuel debts, and then stopped exports to the EU via Ukraine after accusing it of "stealing" the gas. Russia says it will not sell gas to Ukraine until a new contract is signed, and will halt EU exports again if Kiev siphons off more gas.

The crisis has affected 18 countries, leaving hundreds of thousands of homes in the Balkans without heating and forcing major factories to switch to other fuels, reduce production, and even temporarily shut down.

Slovakia says it will restart an ageing nuclear power station to protect it from blackouts, in contravention of its EU accession treaty.

Croatia, Serbia and Bosnia have received emergency gas supplies from Germany, Italy and Hungary, and Moldova's dire situation eased when Ukraine delivered gas from its reserves.

Kiev's efforts to pump gas to Bulgaria were dashed by a lack of pressure in the pipeline, however, leaving tens of thousands of households there without gas heating, and scores of schools and factories closed. With the electricity grid under strain, Bulgaria's president also discussed reopening a mothballed nuclear power plant.