Russia, EU sign gas monitoring deal

Russia and the EU took a step towards securing the resumption of gas flows to Europe yesterday when the two signed a deal on monitoring the supplies through Ukraine.

Ukraine has yet to sign the deal, which would allow EU, Ukrainian and Russian observers to monitor the supplies flowing through Ukraine and assuage Russian fears that Ukraine is siphoning off gas for its own use. Kiev denies the charge.

"Let's sign and we will go immediately to Kiev to ask the same of the Ukrainian side. And so we will end the crisis," Czech Prime Minister Mirek Topolanek, representing the EU presidency, told Russian Prime Minister Vladimir Putin.

The deal was signed after five hours of talks between Russian First Deputy Prime Minister Igor Sechin and EU officials. No details were immediately available.

The dispute, which began when Russia and Ukraine could not agree on this year's gas prices, has closed down factories in eastern Europe and increased fears in the EU over future reliance on Russian gas deliveries.

The row, which led to the worst ever disruption of Russian gas supplies to Europe, also increased tensions between the two former Soviet republics.

Russia accused Ukraine of corruption and stealing gas meant for Europe, and Kiev said Russia's actions amounted to blackmail to extract an unjustifiably high price for its gas to Ukraine.

Both deny the accusations.

Even if the gas resumes, it is likely to be delivered only to Europe, not Ukraine, as Moscow and Kiev have yet to agree a supply contract for this year. Russia has repeatedly said Ukraine must pay the going market rate for gas.

The EU gets a quarter of its gas supplies from Russia, 80 per cent of which passes through Ukraine. So far, supplies to 18 countries have been disrupted by the dispute.

Eastern and central Europe have borne the brunt of the dispute, with many countries forced to seek gas from elsewhere or draw on their storage reserves.

Kiev and its former Soviet master have clashed over Ukraine's efforts to join Nato, a move Moscow opposes and viewed with wariness by European members of the alliance.

Ukraine has been beset for months by political squabbling between Yushchenko and Tymoshenko, his former ally, notably over ties with Russia.