Europe, US urge Russia, Ukraine to solve gas dispute

07 January 2009

Leaders from across Europe have urged Russia and Ukraine to try and work out a solution to their dispute over the pricing of gas supplies as this has started affecting onward gas supplies to eastern Europe and the European Union.

The US also, on Tuesday, urged Russia and Ukraine to resolve their dispute over natural gas supplies, with US state department spokesman Sean McCormack calling on the  countries: "Get together, come to the table, work out the differences that exist between them in what would appear to be a commercial dispute".

The dispute between the two countries hinges on a delivery contract, on account of which Russian natural gas monopoly Gazprom ceased supplies to Ukraine, from where they are onward distributed to European countries.

The EU was reported to have called the situation as "completely unacceptable" in a statement, saying that the two countries have not lived up to their obligations.

Hungarian prime minister Ferenc Gyurcsany too joined the chorus on Tuesday, saying that the Hungarian government finds it "unacceptable" that European consumers have to pay the price for a dispute between Russia and Ukraine.

Reports said that in a letter to Russian prime minister Vladimir Putin, Ukrainian prime minister Yulia Tymoshenko, Hungarian prime minister Ferenc Gyurcsany and Czech prime minister Mirek Topolanekof, who currently holds the European Union's rotating presidency, called the matter as having evolved from a trade dispute to one of relations between the European Union and its eastern neighbours, and called for more direct involvement of EU leaders in what has so far been a bilateral disagreement.