EU to meet Russia, Ukraine officials to avert gas crisis

(BRUSSELS) - The EU commission will bring Russian and Ukraine officials together on Monday, along with international financial institutions, in a bid to avert a new gas crisis in Europe.

The "high-level" talks will include representatives of Russian gas giant Gazprom and its client Naftogaz of Ukraine along with IMF, World Bank, European Investment Bank and European Bank for Reconstruction and Development officials, a spokesman for the commission said on Wednesday.

The aim is to come up with ways "to assure the reliability of gas supplies to the European Union via Ukraine," said spokesman Johannes Laitenberger.

"European citizens must be protected" and Russia and Ukraine must honour their agreements to deliver gas to Europe, he added.

Last week EU commission chief Jose Manuel Barroso warned that Europe "must not sleep-walk into another gas crisis," warning that there was the risk of another major gas crisis "in weeks".

A quarter of all natural gas used in Europe comes from Russia and 80 percent of that is piped through Ukraine.

Europe was plunged into crisis last January when Russia cut exports to Ukraine over a payment dispute.

Ukraine, hard hit by the financial crisis, has struggled to pay for Russian gas and has been forced to beg for a loan of 4.2 billion dollars (3.0 billion euros) from Europe to meet obligations to Russian gas export monopoly Gazprom.

Russian officials have repeatedly sounded the alarm in recent weeks, fearing that Ukraine will not be able to fill gas storage facilities this summer ahead of the peak winter demand season.

With Moscow no longer willing to lend Ukraine the gas or the money to pay for it, there could be a crunch time early next month when a large bill becomes due.

Commission spokesman Laitenberger remained cautious on what Monday's talks might achieve saying: "it's a first meeting and it's probable that others will follow."