Russia-Ukraine gas deal falters

Russia says it cannot implement an agreement with Ukraine to resume gas flows to Europe, accusing Ukraine of adding "unacceptable" conditions. Russian President Dmitry Medvedev said Kiev had added provisos contradicting Moscow's position and that the deal was void until the issue was resolved. Russia-Ukraine gas deal falters The deal aims to end the row between Russia and Ukraine that has created an energy crisis in parts of Europe. A spokesman for the Ukrainian president accused Moscow of "foot-dragging". Twenty-four hours ago it seemed a deal had been done for Russian energy giant Gazprom to re-start gas supplies to Europe via Ukraine, following frantic EU shuttle diplomacy. Both Russia and Ukraine had signed an agreement to allow international monitors to observe the flow of natural gas from Russia to Europe via the Ukraine. However, the deal appears to be off after Medvedev said that Ukraine added provisos to the accord that were unacceptable to Moscow. The BBC's Gabriel Gatehouse in Kiev says it appears that the add-ons relate to the thorny question of Ukraine's gas debts to Russia, and whether or not Kiev had been siphoning off gas destined for European customers. The European Commission, which negotiated the deal, said the Ukrainian declaration did not change the agreement and there was no reason for further delays to the gas deliveries. Meanwhile, EU observers are waiting at pumping stations in Ukraine to monitor the flow of gas. But the taps remain switched off and hundreds of thousands of Europeans will be left in the cold for some time to come. Naftogaz, the Ukrainian state energy company, told the BBC that even if Russia turned the taps on, it could take at least 36 hours for that gas to reach Europe. Russia cut supplies to the Ukraine on New Year's Day. The underlying issue over pricing that provoked the dispute is unresolved. The EU gets a quarter of its gas supplies from Russia, 80% of which passes through Ukraine. The price Ukraine should pay Russia for its gas in the coming year, and how much Russia should pay Ukraine in return for transporting gas to Europe has yet to be agreed. Ukrainian Prime Minister Yulia Tymoshenko has vowed to "try to continue negotiations with Russia through all possible channels" on a new gas contract.

Russia-Ukraine gas deal falters

The deal aims to end the row between Russia and Ukraine that has created an energy crisis in parts of Europe.

A spokesman for the Ukrainian president accused Moscow of "foot-dragging".

Twenty-four hours ago it seemed a deal had been done for Russian energy giant Gazprom to re-start gas supplies to Europe via Ukraine, following frantic EU shuttle diplomacy.

Both Russia and Ukraine had signed an agreement to allow international monitors to observe the flow of natural gas from Russia to Europe via the Ukraine.

However, the deal appears to be off after Medvedev said that Ukraine added provisos to the accord that were unacceptable to Moscow.

The BBC's Gabriel Gatehouse in Kiev says it appears that the add-ons relate to the thorny question of Ukraine's gas debts to Russia, and whether or not Kiev had been siphoning off gas destined for European customers.

The European Commission, which negotiated the deal, said the Ukrainian declaration did not change the agreement and there was no reason for further delays to the gas deliveries.

Meanwhile, EU observers are waiting at pumping stations in Ukraine to monitor the flow of gas.

But the taps remain switched off and hundreds of thousands of Europeans will be left in the cold for some time to come.

Naftogaz, the Ukrainian state energy company, told the BBC that even if Russia turned the taps on, it could take at least 36 hours for that gas to reach Europe.

Russia cut supplies to the Ukraine on New Year's Day. The underlying issue over pricing that provoked the dispute is unresolved.

The EU gets a quarter of its gas supplies from Russia, 80% of which passes through Ukraine.

The price Ukraine should pay Russia for its gas in the coming year, and how much Russia should pay Ukraine in return for transporting gas to Europe has yet to be agreed.

Ukrainian Prime Minister Yulia Tymoshenko has vowed to "try to continue negotiations with Russia through all possible channels" on a new gas contract.