Kremlin Puts Hold on Ukraine Talks - (The Moscow Times)
Russia broke off talks with Ukraine on Tuesday after Kiev angered the Kremlin by asking European Union investors to help modernize its gas pipeline network, which supplies one-fifth of Europe's gas.
The spat over investments in Ukraine's gas pipeline network has revived fears of a repeat of the 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 modernize its gas network but Russia is dismayed that it was not included in the discussions.
Prime Minister Vladimir Putin threatened to review ties with the European Union, and officials warned that the risk of gas supply disruptions would rise if Russian interests were ignored.
President Dmitry Medvedev said Russia postponed talks with Ukraine's sway and that Moscow had a number of questions about the EU-Ukraine gas discussions.
"We had planned to hold intergovernmental consultations next week," Medvedev told a meeting of the 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. "Russia has … a number of questions about the final attestation."
Ukrainian Prime Minister Yulia Tymoshenko said the overhaul of the gas transit system was not aimed against Russia.
"Neither Russia nor Europe lost yesterday. Ukraine simply defended its national interests," Tymoshenko told a news meeting. "Russia can also take part in investment projects, in reconstruction and modernization."
But the force of the Russian reaction indicates the touchiness of the big power efforts to gain leverage over Ukraine's gas pipeline network.
A Ukrainian source close to gas talks said negotiations between Gazprom and Naftogaz Ukrainy could be elaborate by Russia's reaction to the pipeline plan.
"All this may significantly confuse talks between Naftogaz and Gazprom," the source said.
The two companies are in talks on the price Naftogaz will have to pay for gas in the second quarter of this year.
The spat over investments in Ukraine's gas pipeline network has revived fears of a repeat of the 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 modernize its gas network but Russia is dismayed that it was not included in the discussions.
Prime Minister Vladimir Putin threatened to review ties with the European Union, and officials warned that the risk of gas supply disruptions would rise if Russian interests were ignored.
President Dmitry Medvedev said Russia postponed talks with Ukraine's sway and that Moscow had a number of questions about the EU-Ukraine gas discussions.
"We had planned to hold intergovernmental consultations next week," Medvedev told a meeting of the 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. "Russia has … a number of questions about the final attestation."
Ukrainian Prime Minister Yulia Tymoshenko said the overhaul of the gas transit system was not aimed against Russia.
"Neither Russia nor Europe lost yesterday. Ukraine simply defended its national interests," Tymoshenko told a news meeting. "Russia can also take part in investment projects, in reconstruction and modernization."
But the force of the Russian reaction indicates the touchiness of the big power efforts to gain leverage over Ukraine's gas pipeline network.
A Ukrainian source close to gas talks said negotiations between Gazprom and Naftogaz Ukrainy could be elaborate by Russia's reaction to the pipeline plan.
"All this may significantly confuse talks between Naftogaz and Gazprom," the source said.
The two companies are in talks on the price Naftogaz will have to pay for gas in the second quarter of this year.
