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Update: European Union threatens legal action over gas dispute

14 January, 12:39 | Associated Press
Update: European Union threatens legal action over gas dispute
AP
Russian Prime Minister Vladimir Putin,
left, and gas monopoly Gazprom CEO
Alexei Miller seen during a visit to
Gazprom's main control room in Moscow,
Russia, Tuesday, Jan. 13.
Top EU officials warned Russia's and Ukraine's state-run gas companies on Wednesday that they would advise European energy companies to take legal action against them unless they move quickly to restore gas supplies.

European Commission President Jose Manuel Barroso issued a terse and direct message to Moscow's Gazprom and Kiev's Naftogaz to stop holding European consumers hostage to their contract dispute over natural gas prices.

"If the agreement is not honored, it means that Russia and Ukraine can no longer be considered reliable partners for the European Union in matters of energy supply," Barroso told the European Parliament.

He said if a solution to the energy crisis that has cutoff all gas supplies to Europe for a week was not implemented "as a matter of urgency," he would advise European energy companies to sue Gazprom and Naftogaz.

"The current situation is in short most unacceptable and incredible," Barroso added. "The fact is that Gazprom and Naftogaz are being unable to fulfill their obligations toward European consumers."

The tough language came a day after EU efforts to end the energy crisis faltered when a deal for having EU monitors check gas flows through Ukraine failed to restore supplies. Russia and Ukraine have blamed one another for the failure of that gas to reach Europe.

Russia supplies about one-quarter of the EU's natural gas, 80 percent of it shipped through Ukraine's vast pipeline network. Amid a pricing dispute with Ukraine, Russia cut off gas supplies to Europe on Jan. 7 just as the continent was gripped by freezing temperatures

Czech Prime Minister Mirek Topolanek, whose country currently holds the EU presidency, urged the 27-nation bloc to set up a 120-day "mandatory" strategic reserve of oil and natural gas and seek alternative energy supply routes. He called the situation a "crisis of trust" with Ukraine and Russia.

Topolanek proposed that the bloc make its "highest priority" plans to support the construction of the Nabucco natural gas pipeline, which would carry Caspian gas through Turkey to Europe, bypassing both Russia and Ukraine.

The Czech leader also called for diversification of energy sources, including developing more nuclear power.

"What we need to do now is to find a short term solution to end this shortage and we need in the long term to strive for new routes," Topolanek said. "The situation is very dire."

At least 15 European nations have seen their supplies stopped or reduced since Russia last week stopped sending gas through Ukrainian pipelines to countries further west.

Bulgaria has lost all supplies and has only a day or two of reserves. Slovakia has lost 97 percent of its supplies.

The two countries' premiers headed to Moscow for talks with top Russian officials on Wednesday to try to get a resumption of supplies.  

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Guest    (Guest) | 14.01.2009, 15:19
Europe sues both Russia and Ukraine, Russian in turn will Sue Ukraine and Ukraine will end up the biggest loser in any litigation. Yushchenko has the constitutional power to intervene and will no doubt soon use this power as a pretense to declare a state of emergency and arrwst contol over the governmen with the backing of the EU and NATO member states.

YULIA MUST NOT ALLOW UKRAINE TO FALL INTO THIS TRAP.

SHE MUST ACT TO RESTORE GAS SUSPPLIES TO EUROPEAN TRADING PARTNERS WITHOUT DELAY.
Guest    (Guest) | 14.01.2009, 15:12
And to think Yushchenko dismissed the previous stable government then having installed the current government he has done his best to destabilize them also. Exactly what is Yushchenko\'s game plan. I guess he just has to sit back and watch Yulia destroy herself and her government in the process. The longer this situation is allowed to festor the worst it is for Ukraine. Yushchenko will soon have just cause to declare a state of emergency and install Presidential rule over Ukraine. Yulia has no more then 245 hours to resolve this matter to the extent that Europe is no longer held hostage to Ukraine\'s failings and demands.
Guest    (Guest) | 14.01.2009, 15:02
Ukraine must stop acting like state terrorists and \"Gas Pirates\". Why is it that Yushchenko has not stepped in with the support of the NSDC to ensure that Ukraine\'s international treaties and trade agreements are fulfilled. This is one issue where Yushchenko has clear constitutional authority to intervene and yet he remains a party to the breaches of international law and Ukraine\'s trade agreements
Guest    (Guest) | 14.01.2009, 13:12
This doesn\'t help: Let the weapons talk.
Guest    (Guest) | 14.01.2009, 13:24
How about a better solution. UA wanted to be a part of NATO, fine, let the EU take control of the country and bring some order to that messed up place. I am ashamed to be from UA, thank God I don\'t have to live there and watch all this circus in real life. I think people there would be better of if they have outsourced the whole governing task to EU, US, even Russia instead of letting the current inept government putting on this sitcom for the whole world to watch.
Guest    (Guest) | 14.01.2009, 15:07
Or return to the pre world War I and/or II boundaries and allow Russia and Poland, Hungary and Romania under the guidance of the UN to provide stability to Ukraine\'s governance. Clearly Ukraine has become a failed state with a President who no longer maintains respect and control of the situation.
Guest    (Guest) | 14.01.2009, 15:27
EU and NATO don\'t really touch the soverignity of a coutnry. So they can also not take over the government. EU has to look that they find out
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