Russia-Ukraine gas deal for Europe in doubt
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Mr. Putin has accused the pro-Western Ukrainian leadership of President Viktor Yushchenko, facing a deepening economic crisis, of being corrupt and inept. It wants Kiev to move to market prices for its gas, after years of subsidised pricing.
A copy of the monitoring agreement, seen by Reuters, has the handwritten words "with declaration attached" next to the signature of the Ukrainian government's representative.
The declaration, a copy of which has also been seen by Reuters, stated that Ukraine had not siphoned off any transit gas and that it had no outstanding debts to Russian export monopoly Gazprom -- a central bone of contention between the two countries.
It said Russia must supply volumes of "technical" gas, at no cost, to Ukraine to maintain pressure in the pipeline system -- a demand Gazprom described as "an attempt to legalize the theft of gas."
Gazprom said Ukraine was demanding 21 million cubic metres of technical gas per day -- enough to meet the daily needs of a country like Austria.
"Ukraine has again taken a destructive position," a Gazprom statement said.
By late Sunday there were suggestions of a possible move towards a diplomatic solution.
A Putin spokesman said Czech Prime Minister Mirek Topolanek had told the Russian premier in a telephone conversation: "Ukraine's declaration is not part of the (main) protocol and only represents the opinion of the Ukrainian side."
The European Commission said it still believed the Ukrainian statement had no effect on the validity of the deal.
"Mr. Barroso has called Mrs. Tymoshenko and has agreed with her to separate the two documents. They are working out how to make a new terms of reference without a link to the (Ukrainian) declaration," the Commission said.
