“The situation has not reached any critical point. European consumers have not been affected. There’s no immediate threat to them. A number of European states have report drops in pressure and in volume of gas supplies, but they have been able to make up for them through other suppliers and through their own stocks. However, we do feel that the situation is quite serious and the two sides need to come to a conclusion immediately, and they need to immediately resume gas supplies in accordance with their commitment,” Radek Honzak, spokesperson for the Czech permanent representation, told RT.

Tug of war

The Russian energy company Gazprom blames Ukraine on illegally siphoning fuel. However, Ukraine’s Naftogaz officials firmly deny Russia’s accusation and in turn point the finger at Moscow.

“The transit is not suffering but there are a number of technical difficulties,” said Valentin Zemlyansky, a spokesperson for Naftogaz. “Mainly because a new agreement hasn’t been signed with Gazprom. We cannot pay the customs fees without it and the transport systems of Russia, Ukraine and the EU aren't synchronised.”

In the course of earlier negotiations, Ukraine disliked Russia’s offer of $US 250 per 1,000 cubic metres of gas, which is almost half the market price.

In turn, Russia raised the price to a standard European market cost of $US 418 per 1,000 cubic metres which Ukraine again declined.

With no agreement made by the New Year, Russia subsequently cut off gas supplies to Ukraine.

Kiev says that after Gazprom stopped the supplies, the transportation system started to break down.

Still, President Yushchenko’s advisor on energy security Bogdan Sokolovsky believes that they can maintain normal transit for less than two weeks.

“If Russia continues to hold back gas supplies to Ukraine, in just ten days there could be serious setbacks,” he said. “The transit to Europe could be seriously affected. Ukraine is not to blame.”