Progress in resolving gas row as Russia agrees to monitors

(PRAGUE) - Hopes for a quick resumption of Russian gas supplies to Europe were rising Friday after Russia agreed on the terms for the deployment of monitors in Ukraine.

The Czech EU presidency announced late Thursday an agreement had been reached with Russian Prime Minister Vladimir Putin over the gas monitors, in a surprising turnaround hours after EU-sponsored talks in Brussels broke down over that issue.

Czech Prime Minister Mirek Topolanek and Putin agreed during a telephone conversation "on the conditions of deployment of the monitoring commission at all locations that are relevant for the flow of gas," the EU presidency statement said.

"This deployment should lead to the Russian supplies of gas to EU member states being restored," it said, adding that details of the mission would be finalised Friday when EU monitors travel to Ukraine.

The head of Russia's Gazprom, Alexei Miller, had told journalists in Brussels earlier Thursday that once monitors begin working gas shipments will resume.

"Our agreement with the European Union is once the monitors are deployed and they have access, we will immediately resume gas supplies," said Miller.

Topolanek also consulted German Chancellor Angela Merkel who had first proposed dispatching monitors, the EU presidency said.

Putin also told journalists earlier Thursday he supported sending experts to monitor flows of Russian gas through Ukraine, saying he thought "it should be done as quickly as possible."

Despite the announcement of the deal, there was no immediate confirmation from either Moscow or Kiev and it remained unclear when Russia would resume energy supplies.

Russia, which cut supplies for Ukraine's domestic market on January 1 over a payments dispute, accused Ukraine of stealing gas intended for Europe and completely cut shipments on Wednesday.

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. About 80 percent of those imports pass though Ukraine.

The supply cuts means thousands of people in eastern Europe have been left without gas at a time when many are facing temperatures below the freezing point.

The announcement of Thursday's deal with Putin was all the more surprising given the acrimonious remarks by both sides following the break down of talks in Brussels.

Czech Industry Minister Martin Riman told reporters in the Belgian capital earlier that Russian energy monopoly Gazprom had rejected a proposal for independent monitors to check the flow of Russian gas through Ukraine.

EU Energy Commissioner Andris Piebalgs also said Moscow had refused to sign a deal to restore supplies to around a dozen EU nations at least in part because it wanted its own observers stationed in Ukraine.

But Gazprom's Miller pointed the finger at Kiev, saying it "ruined the signing of such a document" on the sending of a group of independent observers to monitor gas flows.

Ukraine agreed to the monitors on Thursday and 10 to 12, drawn from the European gas industry and the European Commission, were due on the ground as early as Friday.

The monitors are to be tasked with checking how much gas is being piped from Russia to Ukraine, which is the main transit route for Russian gas to Europe.

While he conceded the crisis had hurt Russia's image as a reliable gas supplier, Putin insisted Moscow is not to blame and lashed out at Western media who he accused of taking Kiev's side.

"Of course this is creating problems for us. But, forgive me for saying so, but I have not seen an objective evaluation of the situation.

"Foreign media, Western media are painting a completely unobjective picture of 'Russia Shuts Gas to Europe'," he said Thursday at his residence outside Moscow.

With EU countries suffering gas cuts, the bloc's leaders are growing increasingly impatient to see Moscow and Kiev resume the flow of gas critical for heating homes, schools and factories in bitter winter weather.

In Bulgaria the government begun rationing gas supplies to industries and temperatures in buildings plummeted. Seventy-five schools across the country closed until Friday for lack of adequate heating.

Serbia has switched 90 percent of its heating plants to crude oil after Russian gas deliveries were completely halted at midnight on Tuesday.

While in the snow-blanketed Bosnian capital Sarajevo, about 72,000 households remained without heating for a fourth day Friday due to a total halt in Russian gas supplies.

burs/rl