Czech EU presidency upbeat Russia gas row can be solved

(PRAGUE) - The Czech EU presidency voiced optimism on Thursday that the gas crisis between Russia and Ukraine, which has hit European supplies could be ended swiftly.

"I think we have some reasonable chance of a quick resolution of the most urgent need, and that is the rescue of the gas flow," Czech Deputy Prime Minister Alexandr Vondra told reporters as he arrived for an EU ministers meeting in Prague.

"We are working hard," he added, as European Union officials prepared for talks in Brussels with top Russian and Ukrainian gas executives to iron out details on sending monitors to help end their gas dispute.

Russia is the world's biggest natural gas producer and provides about one-quarter of the gas used in the European Union, or about 40 percent of the gas the bloc imports. Some 80 percent of those imports pass though Ukraine.

The row between the two ex-Soviet neighbours has stopped the flow of Russian gas through the Ukraine pipeline and hit tens of thousands in Europe.

EU External Relations Commissioner Benita Ferrero-Waldner, arriving for the Prague meeting, stressed that this was a bilateral row, but acknowledged that it had a political element.

He added that EU Commission chief Jose Manuel Barroso had been in telephone contact late on Wednesday with both Russian Prime Minister Vladimir Putin and his Ukrainian counterpart Yulia Tymoshenko.

"This is something which is having a big impact in Europe," she said.

"We want them (Russia and Ukraine) to be reliable partners."

Lithuanian Foreign Minister Vygaudas Usackas said he saw the situation as a "turning point" in European energy security issues.

"When Gazprom sneezes Europe gets a cold," he told reporters.

"It is really about time to get our acts together."

That for him would mean ensuring transparency between providers and transit nations, ensuring competition among energy companies and seeking new resources, via strategic pipelines that would reach the Caucasus, Middle East and Central Asia.

Germany's state minister for European affairs Guenther Gloser said that one thing at stake was Europe's trust in the two trading partners.

"It is a question of trust that is at stake here. Both sides need simply to honour their commitments,otherwise this is going to damage the interests of the citizens of the EU."