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Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Africa Europe Latin America Middle East North America Search Search: Gazprom warns of 'danger' to Europe gas supply AFP - 2 hours 35 minutes ago MOSCOW (AFP) - - Gas giant Gazprom warned Wednesday that Russian gas supply to western Europe was in "danger" of disruption and accused Ukraine of blackmail, as another New Year's Eve energy dispute went down to the wire. "We are in a situation when transit volumes to western Europe are in danger," Gazprom's deputy chief executive, Alexander Medvedev, said at a news conference. "This position cannot be called anything but blackmail." He produced a letter he said contained a threat from Ukraine's state gas firm Naftogaz to divert gas supplies transiting Ukraine for delivery to Europe if Gazprom halted. The contents of this letter could not immediately be verified independently. Ukraine's political leadership and top Naftogaz officials have so far publicly asserted that Kiev would guarantee all Russian gas shipments to Europe. The accusation alone however marked a sharp upturn in tension with just hours to go before the midnight (2100 GMT) deadline for Ukraine to pay the two billion dollars Gazprom says it is owed for gas imports and late payment fines. Medvedev reiterated that if no new gas delivery contract was agreed with Ukraine by that time, Gazprom would follow through on its promise to halt gas shipments to Ukraine at 0700 GMT on Thursday. Gazprom spokesman Sergei Kupriyanov, flanking Medvedev at the news conference, put the odds of the dispute evolving into a "crisis scenario" at 70-30 in favor described Kiev's handling of the issue as "extremely worrying." Medvedev echoed that view, saying Gazprom has been anxious to avert anything resembling a repetition of the Russia-Ukraine gas crisis on New Year's Eve 2005 and had offered numerous "supplemental incentives" to strike a deal with Kiev. "Frankly speaking, it is incomprehensible how we even got to this point," Medvedev said. "This is unprecedented in the history of international gas relations." The latest crisis was reminiscent of the 2005-2006 ordeal, which resulted in Gazprom briefly halting shipments to Ukraine, Ukraine siphoning gas intended for clients in Europe and eventually spot gas shortages among European clients. In contrast to that episode however, Ukrainian and European officials have downplayed any immediate problems from a halt of Russian gas shipment to Ukraine, saying they have built up sufficient reserves to last through winter. Gazprom says Ukraine owes 1.6 billion dollars for gas it imported in November and December. Ukraine never disputed those arrears, yet late Tuesday transferred just 1.5 billion to an account for payment to Gazprom. Naftogaz did not explain the 100 million-dollar difference. Gazprom has also demanded payment of 450 million dollars in penalties for late payment of the November-December shipments. Kiev has been publicly reluctant to pay this, saying it would discuss "penalties" only later. A spokeswoman for Ukraine's Prime Minister Yulia Tymoshenko said it was "not excluded" that she would travel to Moscow later in the day although officials would not confirm that the visit was definitely scheduled. Officially, Russia argues that the threatened cut-off is a purely commercial matter: Ukraine must pay its bills -- and even Kiev does not dispute the arrears for November-December imports -- or else do without Russian gas. Privately however, Russian policymakers continue to cite reports that Ukraine provided direct military assistance to Georgia in its war last August with Russia as a factor in Moscow's dealings with Kiev on the gas issue. The countries of the European Union are heavily reliant on Russia for their natural gas supplies -- around one quarter comes from Russia, which possesses the world's largest known reserves. Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: World ETA, under pressure, ends 2008 by bombing Basque TV buildingAFP - 19 minutes ago Democrats' struggle with filling Obama seatAP - 50 minutes ago Ghanaian presidential rivals gear up for crunch vote FridayAFP - 54 minutes ago Sri Lanka says 12 Tigers killed as troops close in on rebel townAFP - 56 minutes ago Israel rejects truce call, attacks GazaAP - 1 hour 1 minute ago Enlarge Photo A gas worker from Ukraine's state gas firm Naftogaz adjusts valves at the Bobrovnytska station in the village of Mryn. Gas giant Gazprom has warned that Russian gas supply to western Europe was in "danger" of disruption and accused Ukraine of blackmail, as another New Year's Eve energy dispute went down to the wire. 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