Ukraine's Naftogaz raided amid President-PM standoff

06 March 2009

Russian Prime Minister Vladimir Putin yesterday warned that Moscow would again cut off gas supplies to Ukraine if Kiev does not pay its energy bills to Russia's Gazprom by Saturday.

His comments came a day after Ukrainian security service agents in masks and armed with machine guns burst into the headquarters of the state gas firm Naftogaz in a dramatic flaring of tensions within the country's leadership.

"If, as a result of the use of force this payment is not carried out, this will lead to a halt in supplies from our energy providers both for consumers in Ukraine and, perhaps, also for consumers in Europe," Putin said.

On Wednesday, armed security agents searched the headquarters of Ukraine's natural gas company in a raid that the firm said threatened a deal with Russia over the shipment of gas supplies to Europe.

Again on Thursday, Ukrainian national security service agents tried to gain entry to the offices of the authority which oversees gas pipelines, but were turned away. The investigators were forced to leave the premises of the firm, Ukrtransgaz, following a stand-off with MPs loyal to Prime Minister Yulia Tymoshenko.

The national security service is controlled by President Viktor Yushchenko, while the gas firm, Naftogaz, answers to Prime Minister Yulia Tymoshenko. The two leaders are locked in a political battle that has impeded an effective response to the financial crisis in Ukraine, one of the worst performing economies in Europe.