'Agreed. Start working,' Mr Putin responded.

Hopefully this will put an end to the crisis :)

Putin orders gas to resume

http://www.straitstimes.com/Breaking...

MOSCOW - RUSSIAN Prime Minister Vladimir Putin on Monday ordered the resumption of gas supplies to the European Union, easing a crisis that has hit a swathe of countries and highlighted their dependence on Russia.

Mr Putin gave his approval to the 'test' pumping of gas into Ukraine's transit system at a meeting with the head of the Gazprom energy giant, who warned that Moscow was prepared to reduce supplies again to counter syphoning of gas by Ukraine.

'We propose from 10.00am tomorrow Moscow time (0700 GMT, 3pm Singapore time) to start test pumping of gas,' Mr Putin was told by Gazprom chief Alexei Miller at a televised meeting.

'Agreed. Start working,' Mr Putin responded.

Mr Miller said checks would be carried out to ensure all the Russian gas really transited through Ukraine across the border to EU states, a reference to Russian claims, vehemently denied by Ukraine, that Kiev has stolen transit gas.

'The whole volume that Gazprom supplies on the Ukrainian border should arrive, 100 per cent, on Ukraine's western borders for our European clients.

'In case of unsanctioned syphoning of gas we will decrease volumes delivered by the volume stolen per 24 hours. Russia's position on this has been conveyed to the European Commission,' Mr Miller said.

The announcement came after Russia, Ukraine and the EU signed an agreement on monitoring gas transit through the transit network, the workings of which are notorious for being untransparent and corrupt.

At talks in Brussels on Monday, EU officials voiced growing impatience to resume supplies that were first reduced by Russia on New Year's day and were cut to zero last week, hitting many EU countries at a time of bitter cold.

'We cannot accept further delays, further excuses that keep European citizens in the cold,' said European Commission chief Jose Manuel Barroso.

EU Energy Commissioner Andris Piebalgs said that 'it will take some time to reach our consumers, between 24 and 40 hours,' while other EU officials have said it might take as much as three days.

Under the monitoring deal, international monitors are to be posted at key points in both Russia and Ukraine to measure the amounts of gas being shipped through the transit system.

Central to the dispute has been Ukraine's insistence that Russia must provide additional 'technical gas' used to maintain pipeline pressure and ensure supplies move through the Soviet-era transit network.

Russia says all such gas must be paid for by Kiev as part of its transit contract with Moscow.

The dispute between Russia and Ukraine over gas payments and prices has raised concern about the reliability of supply from Russia, which the EU relies on for almost a quarter of its total gas consumption.

The diplomatic wrangling between Moscow and Kiev came as gas heating for hundreds of thousands of people across Europe remained cut for a second week and factories and schools were closed down in some countries to save energy.

The crisis also unleashed a furious row over Slovak plans to restart a nuclear power plant it shut down as a condition of its 2004 entry to the EU.

EU energy ministers held crisis talks in Brussels on Monday focused on organising help in the short-term for countries hit by gas shortages as well as long-term strategies to avoid a repetition.

Conclusions from the meeting included increased investment in energy infrastructure to wean the bloc off its dependence on Russian imports.

'Europe is totally short-sighted about its joint energy policy,' lamented Italian Energy Minister Claudio Scajola. 'It should not be dependent on people who can bring a country to its knees by turning off the taps.'

The expected resumption of supplies did not end a fundamental dispute between Ukraine and Russia over outstanding Ukrainian debt to Russia for gas supplies to the Ukrainian market and late payment fines, a point stressed by European Commission spokesman for energy issues Ferran Tarradellas.

He said that in the meantime, the monitors would remain on the ground 'as long as is necessary. They don't have a return ticket.'

Mr Putin also spoke by phone with Czech Prime Minister Mirek Topolanek to discuss the possibility of the EU providing credit to Ukraine to pay its gas debts, although the prospects for this arrangement were unclear. -- AFP