Russia, Ukraine trade insults in gas dispute

Russia's gas deliveries to Europe returned to normal yesterday as it traded accusations with former ally Ukraine over who caused the supply disruptions that have sent a chill across the continent.

Russian energy officials were due to meet Ukrainian counterparts late yesterday for talks but neither side signalled any softening in the politicised dispute.

Russia switched off Ukraine's gas on January 1 after Kiev rejected a fourfold hike in prices.

A day later it was forced to turn the taps back on when key European customers complained their supplies had been hit too and chided Moscow for using energy as a political tool.

Russia has accused Ukraine of stealing gas intended for other European countries. Ukraine says Russia is lying.

"As long as the dispute between Ukraine and Russia is going on, we are concerned. We are really concerned," said EU Energy Commissioner Andris Piebalgs.

The dispute prompted EU energy officials to call emergency talks today to discuss the security of energy supplies - the same issue Russia says it wants to top the agenda during its chairmanship this year of the G8 club of rich nations.

Austria, holder of the European Union presidency, rejected overtures from Moscow to pressure Ukraine over the dispute, urging the two sides to sort out the problem.

Major European users of Russian gas said their supplies were back to normal, to the relief also of the United States which has chastised Russia for using energy supplies as a political tool.

However, Gazprom warned there was still a risk of supply disruptions to Europe if Ukraine continues to steal gas.

"There is still a danger that the situation could develop in such a way that we are not going to be in a position to compensate," Gazprom deputy CEO Alexander Medvedev said. Ukraine has said it will help itself to Russian gas piped across its territory if temperatures dip below freezing.