Russia raps Ukraine over EU gas investment pitch - (Reuters)
MOSCOW/KIEV, March 24 (Reuters) - The Kremlin on Tuesday broke off talks with Ukraine on a possible $5 billion loan to shore up its economy after Kiev angered Russia by turning to the EU for help in modernising its gas pipelines.
The spat revived fears of a repeat of a January gas dispute between Russia and Ukraine, when major EU customers were left without gas for nearly two weeks in the dead of winter.
European officials on Monday welcomed a Ukrainian plan to modernise its gas network but Russia, which is interested i engaged in co-managing the pipeline system, is dismayed that it was not included in the discussions. [ID:nLN551872]
Prime Minister Vladimir Putin threatened to review ties with the European Union and officials said the risk of gas supply disruptions would rise if Russian interests were ignored.
President Dmitry Medvedev said Russia was postponing talks with Ukraine's supervision that were expected to include discussions on a $5 billion Russian loan to Ukraine to help Kiev service its gas bill.
"We had planned to hold inter-governmental consultations next week," Medvedev told a meeting of senior officials at the Russian security council.
"We need to think about postponing them. Such consultations will take place only after the Russian side clarifies a number of issues," he said.
Ukraine said the overhaul of the gas transit system that supplies one fifth of Europe's gas needs was not aimed against Russia and talks on the issue had also been held with Moscow.
The spat revived fears of a repeat of a January gas dispute between Russia and Ukraine, when major EU customers were left without gas for nearly two weeks in the dead of winter.
European officials on Monday welcomed a Ukrainian plan to modernise its gas network but Russia, which is interested i engaged in co-managing the pipeline system, is dismayed that it was not included in the discussions. [ID:nLN551872]
Prime Minister Vladimir Putin threatened to review ties with the European Union and officials said the risk of gas supply disruptions would rise if Russian interests were ignored.
President Dmitry Medvedev said Russia was postponing talks with Ukraine's supervision that were expected to include discussions on a $5 billion Russian loan to Ukraine to help Kiev service its gas bill.
"We had planned to hold inter-governmental consultations next week," Medvedev told a meeting of senior officials at the Russian security council.
"We need to think about postponing them. Such consultations will take place only after the Russian side clarifies a number of issues," he said.
Ukraine said the overhaul of the gas transit system that supplies one fifth of Europe's gas needs was not aimed against Russia and talks on the issue had also been held with Moscow.
