Russia lays down terms for gas supply resumption

Russian President Dmitry Medvedev today laid down terms for a resumption of Russian gas shipments via Ukraine to Europe as tens of thousands of Europeans suffered heating cuts amid freezing weather.

Russian energy giant Gazprom earlier announced a halt to all gas transit to Europe through Ukraine, around one-fifth of the European Union's energy needs, saying it had been forced to do so because Ukraine was blocking transit.

Medvedev told his Ukrainian counterpart Viktor Yushchenko that Ukraine must pay market rates for Russian gas, pay its gas debts and allow a new "control mechanism" involving EU observers to verify gas flows through its territory, the Kremlin said.

Speaking to Yushchenko in a phone conversation ahead of EU-brokered talks between Russian and Ukrainian energy officials set to take place in Brussels tomorrow, Medvedev also said Moscow was ready for talks with Kiev "any time."

"The price for the gas needs to be the market rate, corresponding to the European price level ...

There must not be any discounts or special rates at all," Medvedev was quoted as saying in a Kremlin press service statement.

"For the resumption of gas supplies, there needs to be a control mechanism in place" with the participation of Russian and Ukrainian energy officials, EU observers and international legal firms, Medvedev continued.

His comments appeared to summarise terms already laid out by various Russian officials, including Prime Minister Vladimir Putin.

Russia stopped gas deliveries to Ukraine on January 1 in a dispute that has seen supplies fully halted to at least 11 European states as temperatures in some places plunged as low as minus 25 degrees Celsius (minus 13 Fahrenheit).

Slovakia may reopen nuclear plant
Slovak Prime Minister Robert Fico said that Slovakia might reopen a power generating unit at Jaslovske Bohunice nuclear plant if a freeze of gas supplies from Russia continued.

"Should Slovakia continue to be a hostage of this bilateral conflict between Russia and Ukraine, I can imagine reopening of the shut-down unit at Jaslovske Bohunice nuclear plant,"

Fico told a press conference. Earlier on Wednesday, the biggest Slovak gas company SPP curbed deliveries for industrial clients after Russia cut off all gas deliveries to Slovakia.