MOSCOW  - President Vladimir Putin warned European leaders on Thursday Russia would cut natural gas supplies to Ukraine if it did not pay its bills and said this could lead to a reduction of onward deliveries to Europe.
In a letter to the leaders of 18 countries, he demanded urgent talks with Europe on pulling Ukraine’s economy out of crisis but made clear his patience was running out over Kiev’s $2.2 billion gas debt to its former Soviet master.
His comments were Russia’s most explicit threat to cut off gas to Ukraine, a move that could worsen a dispute over Moscow’s annexation of Crimea that has resulted in the worst East-West crisis since the end of the Cold war in 1991.
“...Gazprom is compelled to switch over to advance payment for gas deliveries and, in the event of further violation of the conditions of payment, will completely or partially cease gas deliveries,” Putin said in the letter, sent to European leaders including German Chancellor Angela Merkel, whose country is the largest consumer of Russian gas in the 28-nation EU.
“Undoubtedly, this is an extreme measure. We fully realise that this increases the risk of (Ukraine) siphoning off natural gas passing through Ukraine’s territory and heading to European consumers,” Putin wrote in the letter, seen by Reuters.
Russia meets 30 percent of Europe’s natural gas demand and half of its gas transit to the EU goes through Ukraine.
State-controlled gas producer Gazprom stopped pumping gas to Ukraine during price disputes in the winters of 2005-2006 and 2008-2009, leading to reduced supplies in European countries that receive Russian gas via pipelines that cross Ukraine.
White House spokesman Jay Carney said he had not seen Putin’s comments but: “We’ve made clear in the past that it is wholly inappropriate to use energy exports to achieve diplomatic or geopolitical objectives. “We’re in constant conversation with our European partners on matters like this,” Carney told reporters on Air Force One, President Barack Obama’s plane. “But again that’s just a broad statement. I haven’t seen that latest report.”
Kiev failed to meet a deadline on Monday to pay for its March gas supplies. On Wednesday Putin discussed with his government how to respond but opted to hold talks with Europe before pressing ahead with any new punitive action.
“The situation is urgent,” Putin’s spokesman, Dmitry Peskov, told reporters.
In the letter, Putin called for talks involving economy, finance and energy ministers on “concerted actions to stabilise Ukraine’s economy” and ensure Russian gas deliveries.
“We must lose no time in beginning to coordinate concrete steps. It is towards this end that we appeal to our European partners,” Putin wrote. He said Ukraine’s economic crisis was partly caused by unbalanced trade with the EU.
Meanwhile, NATO released Thursday a score of satellite pictures of up to 40,000 Russian troops massed along the Ukraine border that it said are ready for action and represent a “real threat” to Kiev.
The Western military alliance estimates that “between 35,000 and 40,000” Russians, armed with tanks and military vehicles, have been deployed in over 100, mainly temporary, bases to the east of Ukraine. Brigadier Gary Deakin, director of the Comprehensive Crisis Operations and Management Center (CCOMC) at NATO’s SHAPE military headquarters, estimated the troops could be deployed in 12 hours at Moscow’s command.
“This force is very capable, ready to move quickly if ordered,” he said.
“It’s a concern because it represents a real threat for Ukraine,” he said as NATO unveiled 19 pictures, most in black-and-white, of several Russian military sites that were shot at the end of March and early April
One shows 21 helicopters on a landing strip “that didn’t exist before” troops dug in during early March in the middle of a field near the city of Belgorod, some 40 kilometres from the border.
Around 40 tanks and 100 infantry vehicles are lined up nearby “though there is no trace of a permanent base,” the NATO official said.
The fact they were not camouflaged “means that you are ready to go or that you want to be seen,” said Deakin.
Other photos show troop concentrations at other parts of the border alongside hundreds of troop transport vehicles, equipment and arms.
Some of the photos highlight the presence of temporary air bases near the Azov sea, between Ukraine and Russia, and close to Crimea. One shows Sukov 27/30 and 24, along with Mig-31 military aircraft ready to take off at an airport, which had been left in disuse until recent weeks.
“They are able to reach Ukraine in a few minutes,” said Deakin.
Commenting on whether they were part of a military exercise, he said: “We don’t see a lot of exercises going on.”