by Xinhua writer Shang Jun

    BRUSSELS, Jan. 8 (Xinhua) -- Thousands of Europeans will remain without Russian gas amid freezing weather as talks brokered by the European Union (EU) between Russia and Ukraine failed to make the two sides agree on an international monitoring mission on Thursday.

    The Czech EU presidency said it was Russian gas monopoly Gazprom that rejected a gas monitoring plan agreed upon by both the EU and Ukraine.

A gas valve is seen at German energy giant E.ON's Hungarian natural gas storage facility in Hajduszoboszlo, about 200 km (124 miles) east of Budapest January 7, 2009. (Xinhua/Reuters Photo) Photo Gallery>>>

    "Unfortunately I have to tell you that Gazprom representatives refused this proposal," Czech Minister of Commerce Martin Riman told a press conference in Brussels.

    Earlier in the day, the EU hosted emergency talks separately with top executives from Gazprom and Ukraine's state-run gas company Naftogaz, aiming to work out a plan to deploy an international monitoring mission at transit points to check the flow of Russian gas intended for Europe via Ukraine.

    Riman said although Ukraine had agreed to allow EU observers to supervise the operation of its gas transit system, Russia insisted that its own experts should be included in the monitoring mission.

A pressure gauge is seen at a Ukrainian gas compressor station in the village of Boyarka near Kiev January 4, 2009. Russia and Ukraine looked no closer to compromise on Sunday over a gas row that has disrupted supplies to at least four European Union countries as they face freezing winter temperatures.(Xinhua/Reuters Photo) Photo Gallery>>>

    "We are disappointed by this position of Russia because we believe that the Russian side has no reason to refuse this proposal," he said.

    EU Energy Commissioner Andris Piebalgs said the EU itself has no objection to Russia's demand, but it was up to Ukraine to decide whether to accept Russian observers in its territory.

    "The issue that is beyond, I believe, the EU mandate is to agree also on Russian observers in Ukraine," he said.

    Despite Russian rejection, Piebalgs said the agreement between the EU and Ukraine remains valid and an EU monitoring mission, composed of 10 to 12 representatives from the European gas industry and the European Commission, is due to arrive in Ukraine as early as Friday.

    However, no deal with Russia means gas supplies to Europe through Ukraine will not be resumed at the moment.

    All Russian gas supplies to Europe via Ukraine were shut down on Wednesday as a gas row between Russia and Ukraine escalated, creating supply crisis for a number of EU countries.

    Piebalgs acknowledged that Russian gas supplies to Europe via Ukraine will not be resumed until Russia agrees.

    "I cannot name a date and time when the gas flow will be reinstated," he said.

    Piebalgs said the EU will keep close contact with Russia and Ukraine, but the only way that the EU could use is negotiation.

    Gazprom chief executive Alexei Miller said earlier in the day that his company stands ready to resume gas supplies to Europe via Ukraine once international monitors are in place.

    Miller told reporters in Brussels after talks with EU officials that he would hold further direct talks with Naftogaz's head Oleg Dubyna back in Moscow.

    "This must be resolved today," he said.

    An unexpected meeting between Miller and Dubyna in Moscow early Thursday failed to break the deadlock.

    Russia cut off gas supplies to Ukraine on Jan. 1 after the two countries failed to reach an agreement on gas prices for 2009, immediately resulting in disruptions of transit supplies to the EU. One fifth of the gas used by the EU comes from Russia through Ukraine pipelines.

    Both Russia and Ukraine had been blaming each other for the gas shortage in the EU.

    At least 15 European nations, mostly in Central and Eastern Europe, had reported a halt in Russian gas shipments by Wednesday.

    Caught up in the gas row between Russia and Ukraine and hit by freezing weather, several EU countries were faced with a serious gas crisis, with factories shut down, schools closed and thousands of people left without gas for heating.

    The International Energy Agency warned that Bulgaria, Romania, Greece and Turkey would have difficulty providing electricity and heating if the cold weather and gas disruptions continued next week.

    "It is unacceptable for the EU to see its citizens and enterprises suffering from gas shortages due to the non-respect by both partner countries of their contractual obligations," the Czech EU presidency said in a statement on Thursday.

    A special meeting of EU energy ministers will be held on Monday in response to the current situation, according to the statement.

    The EU said it also insists on the necessity to create the conditions for a long term solution, based on internationally recognized principles, thus putting an end to regularly occurring crises in the midst of winter.

    Security of energy supply is a priority for the EU. The latest gas row between Russia and Ukraine highlighted the bloc's over-dependence on Russian gas.

    The EU said it will speed up work on various energy security initiatives, with particular emphasis on priority interconnections both within the EU and with supplier and transit countries, increased transparency, and the developing of crisis mechanisms to tackle temporary supply disruptions.

    EU leaders are expected to reach decisions on actions to ensure energy security at their summit in March. 

EU strikes deal with Russia on gas monitoring

    BRUSSELS, Jan. 8 (Xinhua) -- The European Union (EU) reached a deal with Russia on the deployment of monitors to check gas flow via Ukraine, paving the way for the resumption of Russian gas supplies to Europe, the Czech EU presidency said late Thursday.
    "The Czech Prime Minister and the Russian Prime Minister agreed on the conditions of deployment of the monitoring commission at all locations that are relevant for the flow of gas," the Czech government said in a statement. Full story

Putin insists Ukraine pay market gas price

    MOSCOW, Jan. 8 (Xinhua) -- Russia will charge Ukraine full market price for natural gas and is prepared to pay a market rate for gas transit via Ukraine, Prime Minister Vladimir Putin said on Thursday.

"The Prime Minister believes the current situation represents a challenge for all of Europe ... The non-observance of contracts signed is totally unacceptable," said a statement issued by the PM's office after a meeting on gas supplies in France. Full story