First Deputy Prime Minister Viktor Zubkov sent letters to EU heads of Government informing them of the situation surrounding the transit of natural gas supplies to European consumers across Ukraine, in accordance with the agreements reached as part of the Russia-EU Energy Dialogue on the Early Warning System for Energy.

The information was sent to President of the European Commission José Manuel Barroso, Federal Chancellor of the Austrian Republic Werner Faymann, Bulgaria's Prime Minister Sergei Stanishev, Hungarian Prime Minister Ferenc Gyurcsany, Germany's Federal Chancellor Angela Merkel, Greek Prime Minister Kostas Karamanlis, Italy's Prime Minister Silvio Berlusconi, Romanian Prime Minister Calin Popescu-Tariceanu, Slovakian Prime Minister Robert Fico, Slovenian Prime Minister Borut Pahor, French Prime Minister Francois Fillon, Czech Prime Minister Mirek Topolanek and Polish Prime Minister Donald Tusk.

The document reads that the Russian Government and state gas export monopoly Gazprom have been making a lot of efforts to settle the whole scope of problems in Russian-Ukrainian gas relations, primarily concerning the clearance of Ukraine's overdue payment for the gas supplied.

In this connection, Mr Zubkov informed European heads of Government that Russia had developed, as a goodwill initiative, a settlement scheme involving advance payment for the transit of Russian natural gas to Europe. However, the parties have so far failed to reach agreement because Ukraine' position is not constructive.

Mr Zubkov expressed amazement that they should procrastinate after the IMF agreed to extend a $16.5 billion loan to Ukraine to reduce deficit, balance state budget and support the banking sector.

"I can assure you that Gazprom intends to fully comply with its European contract obligations as usual. Here is a long term agreement on gas transit across Ukraine, which implies Ukraine's transit obligations unrelated to gas supplies to local consumers. On the other hand, one cannot rule out disruptions in stable gas supplies to Europe due to Ukraine's current policy or its other actions affecting gas transit," he emphasised.
He also said that Russia would continue intensive negotiations with Ukraine in the few remaining days of 2008 on the whole range of gas-related issues, adding that Ukraine was fully responsible for any negative consequences inflicted on European consumers by the current conflict. Ukraine holds the key to the settlement of this conflict, he said.