EU says Ukraine-Russia gas talks in Berlin postponed

(BRUSSELS) - EU-brokered gas talks due Tuesday in Berlin between Russia and Ukraine have been postponed and technical discussions will be held in Brussels next week instead, the EU announced Friday.

The goal of the talks, which opened March 20 in Brussels, is to secure Russian gas deliveries for Ukraine through the next winter, as well as onward supplies to Europe.

The two sides are negotiating against the backdrop of a shaky ceasefire between Kiev government forces and pro-Moscow rebels in eastern Ukraine.

The next round of talks "has been rescheduled," the European Commission, the EU's executive arm, said in a statement, confirming an earlier AFP report.

"The parties will meet in Brussels at technical level during next week instead," it added.

In Kiev, a Ukrainian government source told AFP that "the Russian side refused to be part of these negotiations in Berlin ... so they won't take place."

"The Russians finally refused without giving a reason," the source said.

European Commission Vice-President for Energy Union Maros Sefcovic sounded an upbeat note for the continuation of the talks.

"I welcome the progress that Russia and Ukraine have achieved so far," Sefcovic said in a statement.

"I am confident that expert talks will prepare the ground for the next meeting at political level, which is foreseen to take place still in April," he added.

Russia and Ukraine agreed last week to extend for three months an agreement reached last year to cover winter supplies up to end-March.

Andriy Kobolev, the chief executive of Ukraine gas operator Naftogaz, told a press conference in Brussels earlier on Friday that "we will negotiate a 12-month package" at the next round.

"We would prefer it to be signed as soon as possible though we more or less have a stable situation for the next three months," Kobolev said.

Kobolev spoke at NATO headquarters which he said he would visit regularly to keep friends updated because "the overall situation is quite difficult and gas and energy was always one of the elements of hybrid wars" waged by Russia.

Kobolev said he would also meet Commission officials Friday to discuss cash-strapped Ukraine's need for $1.5 billion in funds from foreign banks or institutions to buy six billion cubic metres of gas.

Russia accounts for about a third of the EU's gas needs, with half that amount transiting via Ukraine.

The EU hopes a deal can be reached to ensure supplies through to late 2016, when an international arbitration panel in Stockholm is due to rule on the dispute between the two sides that erupted after the Ukraine crisis.