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Russia threatens new cutoffs if Ukraine taps gas after deal

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The Russian president warned Ukraine on Sunday that if international monitors find it tapping gas destined for European consumers, transit volumes would be cut by an equal amount or halted again.
GORKI, January 11 (RIA Novosti) - The Russian president warned Ukraine on Sunday that if international monitors find it tapping gas destined for European consumers, transit volumes would be cut by an equal amount or halted again.

Russia and Ukraine agreed this weekend to install international gas monitoring at gas inlets and outlets in both countries. The document signed separately by Moscow and Kiev was brokered by the European Union.

However, Russian energy giant Gazprom said on Sunday it had not received even a copy of the document signed by Ukraine, a key condition for resuming Russian gas supplies to Europe, halted on January 7.

"Even if transit is resumed [as soon as Russia receives the protocol on transit control signed by Ukraine], we will proceed from the fact that if observers find gas is being tapped ... transit will be cut by the appropriate amount," Dmitry Medvedev said at a working meeting with Deputy Prime Minister Igor Sechin.

CEO Alexei Miller earlier assured European Commission officials and representatives of European companies consuming Russian gas that Gazprom had made every arrangement for an international monitoring commission to start working as soon as possible.

The international monitoring team will include experts from the European Commission, the Russian and Ukrainian energy ministries, Gazprom and Naftogaz officials, as well as representatives of Europe's largest gas utilities, including France's GDF Suez S.A. and Societe Generale de Surveillance S.A., Germany's E.ON Ruhrgas AG and Wingas GmbH, Italy's ENI SpA, Norway's Statoil Hydro.

A senior member of the industry committee at the lower house of Russia's parliament said on Sunday that Ukraine's signing the monitoring document meant Kiev had started moving toward a real compromise.

"This is a legal mechanism prompting the hope that discussions on a number of strategic issues, including on commitments on gas supplies to European countries, will be continued," Valery Draganov said, labeling Ukraine's behavior as "unprecedented."

He also expressed hope that Europe would reconsider its traditional attitudes to Ukraine as a factor in relations with Russia.

The European Commission said in a press release on Sunday that its team was starting monitoring at most destination sites in Russia and Ukraine, including the Russian Sudzha gas metering station, Gazprom's main control office in Moscow and several facilities in Ukraine.

The EU market, which gets 80% of its Russian gas via Ukraine, has lost 30% of its total gas imports.

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