"In 2003-2004, on Ukraine's initiative, the question of establishing an international consortium was raised. An organization comprising Ukraine, Russia, Germany and France was established. But the project turned out not to be viable," Sechin told journalists.
Sechin took part in Wednesday's talks between Prime Minister Vladimir Putin and his counterparts from Bulgaria, Moldova and Slovakia on Russian gas transit via Ukraine to Europe.
"We don't know what is happening in the Ukrainian gas transportation system," he said. "They just closed the valve and won't open it."
Sechin said Gazprom's losses sustained over Ukraine's refusal to transit Russian gas to Europe have reached $1.2 billion.
"As of today, the losses have reached $1.2 billion," said Sechin, who supervises Russia's fuel and energy sector in the Cabinet.
He said Russia is considering alternative routes for gas supplies to Europe, including from West Siberia.
The world's largest gas reserves are located in the Yamal-Nenets Autonomous Area in West Siberia. The region accounts for over 90% of Russian gas output and around 20% of global gas production.
Gazprom gave the go-ahead on Tuesday morning to resume gas deliveries via Ukraine, halted earlier in January over a dispute with Ukraine, but no gas got through to Europe, causing Moscow to accuse Kiev of blocking the gas transits.
Ukrainian President Viktor Yushchenko denied on Tuesday that Kiev was blocking Russian gas transits to Europe or stealing gas, following a failure by Russia to make a test delivery through Ukraine.
