Vladimir Putin has mocked diplomatic efforts to end the Ukraine crisis as Russia threatened to disrupt European gas supplies by cutting off sales to Kiev over its unpaid debts.
The Russian president said through his official spokesman that, despite deep disagreements with the West, he did not want a confrontation over Ukraine to spiral into a “new cold war”.
Nevertheless Dmitry Peskov ridiculed Western demands for direct talks between the Kremlin and the new Kiev government, claiming that the loss of credibility involved “puts a smile on our face”.
The remarks were broadcast during the opening ceremony of the Paralympic Winter Games in Sochi, where the Ukrainian athlete carrying his national flag was given a loud cheer.
Earlier, Gazprom, Russia’s state-owned energy giant, said it would start to reduce deliveries to Kiev, a move that would disrupt supplies to Europe. Gazprom said Ukraine had failed to make payments on its £1.2 billion debts.
Ukraine is one of the main transit routes for the continent’s gas and the suspension of Gazprom exports in freezing temperatures in 2006 and in 2009 endangered national grids and caused sharp rises in prices. “We can’t supply gas for free,” Alexey Miller, the head of Gazprom, said. “Either Ukraine settles its debt and pays for current deliveries or the risk arises of a return to the situation we saw at the start of 2009.”
Energy experts said Russia had the power to cause problems in markets across Europe, even though peak winter demand was past. “Europe still relies heavily – in some cases 100 per cent – on Russian gas. And if that was interrupted very suddenly, there would be difficulties all round,” said Lord Howell, the former energy secretary.
But the White House brushed off the Russian announcement as less of a blow for EU economies than in previous years. Josh Earnest, the White House spokesman, said reduced Russian exports would not have an immediate effect since stocks in Europe were above normal levels because of a mild winter. Structural changes in the industry also mean that less of Europe’s gas went through Ukraine.
Russian foreign ministry officials issued the tit-for-tat warnings a day after an EU summit suspended talks on visa-free access for Russians to Europe and threatened sanctions if Moscow did not change course. “Russia will not accept the language of sanctions and threats,” a foreign ministry statement said.