Russian Prime Minister Vladimir Putin threatened to scrap a planned pipeline that would carry Russian gas under the Baltic Sea to Germany, a high-profile project that has faced stiff opposition in parts of Europe.

Russian Prime Minister Vladimir Putin threatened to scrap a planned pipeline that would carry Russian gas under the Baltic Sea to Germany, a high-profile project that has faced stiff opposition in parts of Europe.

"Europe must decide whether it needs this pipeline or not," Mr. Putin told Finland's prime minister, Matti Vanhanen, at a meeting in Moscow. "If you don't, we will build liquefaction plants and send gas to world markets, including to European markets. But it will be simply more expensive for you," he added.

The comments came ahead of talks set for Friday in Nice, France, where Russian President Dmitry Medvedev hopes to get relations back on track with the leaders of the European Union, Russia's largest trading partner. Those ties were severely strained by Russia's war in Georgia in August.

Norwegian Prime Minister Jens Stoltenberg, meanwhile, seeking to reassure Europe about alternative supplies, said after talks with European Commission President Jose Manuel Barroso on Wednesday that Norway plans to increase exports of natural gas to Europe.

In Brussels, Ferran Tarradellas Espuny, spokesman for the EU's energy commissioner, said, "The EU continues to strongly support the Nord Stream pipeline as an additional source of gas supplies from Russia."

But EU lawmakers have called for a new investigation into the pipeline's environmental impact. The plan also has been attacked by Poland, Lithuania and Estonia, angered at being shut out of the direct route. In recent weeks, the global financial crisis and the sharp fall in oil prices also have raised questions about financing the 7.4 billion euros ($9.27 billion) project, which is to be completed in 2011.

Nord Stream, which involves OAO Gazprom of Russia, E.ON AG and BASF of Germany and NV Nederlandse Gasunie of the Netherlands, has been a top Kremlin political priority for years since it would bring the first direct Russian gas exports to Western Europe, bypassing transit states such as Ukraine.

Finland, one of several EU states that has a say in approving the project, will conduct an environmental review of the plan next year, Mr. Vanhanen said.

After the talks, Mr. Putin said Moscow had agreed to delay imposing new tariffs on wood exports set to take effect Jan. 1. The plans had met harsh opposition in Finland, whose forestry industry depends heavily on Russian logs.

Separately, Russian Deputy Prime Minister Alexander Zhukov said Gazprom is looking at buying a stake in Spanish energy company Repsol-YPF SA.

"Gazprom is considering buying 20% of Repsol, which is offered for sale by Spanish builder Sacyr Vallehermoso," the Russian news agency RIA-Novosti quoted Mr. Zhukov as saying.

Repsol declined to comment.