The European Union is deeply concerned after Russia's OAO Gazprom (GAZP.RS) said it may halt deliveries of natural gas to Ukraine from Jan. 1, a spokesman for Energy Commissioner Andris Piebalgs said Thursday.
"Commissioner Piebalgs has called on both parties to reach as soon as possible a definitive compromise that solves the situation once and for all," said Ferran Tarradellas Espuny.
Tarradellas said the situation was worrying because the threat of a cutoff comes in the winter when gas demand is highest, and because it could damage European consumer perception of Russia as a supplier and of Ukraine as a reliable transit country for gas.
"At the same time, the commission expects that the bilateral differences between Ukraine and Russia will have no effect whatsoever on the supplies of gas to the E.U.," he said.
Gazprom said it isn't obliged to continue supplying natural gas to Ukraine, which has fallen behind on payments. State-controlled Gazprom, which supplies around a quarter of Europe's natural gas, fears Ukraine may tap transit deliveries destined for Europe if its own supplies are cut.