EU's Barroso urges Ukraine to avoid disruptions in gas supplies

Nov 5, 2009, 18:12 GMT

Brussels - European Commission President Jose Manuel Barroso on Thursday urged Ukraine to do everything in its power to prevent a repeat of last winter's gas crisis, in which a fight with Russia over money cut off supplies to much of Europe.

'European citizens must not be subject to further disruptions of gas supplies from Russia through Ukraine,' Barroso's office said in a statement following a conversation between the commission chief and Ukraine President Victor Yushenko.

Ukraine has asked the International Monetary Fund (IMF) to speed up a 3.8-billion-dollar loan so that the former-Soviet state can buy natural gas and prevent a new crisis.

Barroso on Thursday warned that the IMF programme for financial support to Ukraine was 'not on track' and made clear that this could adversely affect Ukraine's economic stability.

   About one quarter of the gas burned in the EU comes from Russia, and 80 per cent of it passes through Ukraine. Because there is a limit to the capacity of the Soviet-era pipelines, Ukraine usually buys Russian gas in the summer, stores it until the winter and then sells it on to European clients.

   But the system is marred by chronic financial problems within the country and political feuds at home and with Russia.

   In January, Russia's gas monopoly, Gazprom, shut off supplies to its Ukrainian equivalent, Naftogaz, in a row over unpaid bills. The row left a swathe of countries in central and southern Europe without gas in the depth of winter.

Russian and Ukrainian officials warned this week that similar problems could arise soon, with Russian Prime Minister Vladimir Putin calling on the EU to offer a bridging loan.