BBC NEWS

EU warns of legal action over gas 

The European Commission has warned Russian and Ukrainian gas companies of
legal action over a dispute which has left many Europeans without heat. 

Commission president Jose Manuel Barroso said he would advise EU energy
companies to sue unless Gazprom and Naftogaz move fast to restore supplies. 

Diplomatic pressure is growing, with the Bulgarian, Slovak and Moldovan PMs
holding talks in Moscow and Kiev. 

Supplies remain cut off because of a payment row between Russia and Ukraine.


'Matter of urgency' 

Mr Barroso told the European Parliament the dispute between the Ukraine and
Russia was "most unacceptable and incredible". 

He said if agreements, sponsored by the European Union, are not observed "as
a matter of urgency", he will advise energy companies that have deals with
Gazprom and Naftogaz, to file lawsuits against them. 

"If the agreement is not honoured, it means that Russia and Ukraine can no
longer be regarded as reliable," he said. 

MEPs are due to debate the situation later on Wednesday. 

Gas flowed from Russia to Ukraine on Tuesday, but Kiev said it was
technically unable to pass it on to its neighbours. 

Eighteen other European countries have been affected by the gas supply row. 

Hundreds of thousands of people are still without heating in eastern and
south-eastern Europe after Moscow stopped supplies routed through Ukraine
last week. 

Bulgaria has had to close schools and other public buildings, due to the
cuts. 

In Kiev, Slovakia's prime minister told his Ukrainian counterpart his
country had 11 days of gas reserves left before it would be forced to resort
to what he called "measures never seen in the history of Slovakia". 

"May I simply ask how long this will go on?" Robert Fico asked Yulia
Tymoshenko 

He also asked the Ukrainian prime minister if Kiev could supply Slovakia
with gas from its own reserves, until the flow of Russian gas resumed. 

But Ms Tymoshenko said Ukraine did not have enough gas to spare. 

Mr Fico then moved to Moscow, to join the prime ministers of Bulgaria and
Moldova for a meeting with the Russian prime minister Vladimir Putin. 

Slovakia and the Baltic states are entirely dependent on gas from Russia. 

Meanwhile, Polish president Lech Kaczynski, whose country also relies
entirely on Russia for its gas, will meet his Ukrainian counterpart Viktor
Yushchenko. 

Despite optimism on Tuesday that the dispute was nearing an end, the flow of
gas was brief - and resulted in increasingly antagonistic rhetoric from both
sides. 

Technical arguments 

An agreement, brokered late on Monday by the Czech prime minister, to allow
international experts to monitor the flow of gas through Ukraine, was
designed to overcome the deep feeling of mistrust between the two former
Soviet neighbours. 

Russian switched on the gas supply to Ukraine at the Sudzha pumping station
on Tuesday morning in what Moscow officials described as a test delivery. 

But Ukraine said it could not physically pump the gas to Europe in the
volumes Russia was currently providing, or along the pipeline route Moscow
wanted it to take. 

Russian energy giant Gazprom dismissed that claim. 

The arguments are hugely technical, but the fact is they cannot both be
right, says the BBC's Gabriel Gatehouse in Kiev. 

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