EU says Ukraine gas crisis might be avoided

Mon Oct 19, 2009 8:01am EDT

* EU Commissioner says better preconditions this year

* Says there are still risks in Russia-Ukraine talks

* Says EU Commission "vigilant"

By Harry Papachristou

ATHENS, Oct 19 (Reuters) - The Energy Commissioner of the European Union, Andris Piebalgs, on Monday raised hopes that gas supplies from Russia to western Europe during this year's heating season might flow without problems.

Conflicts between Russia, whose gas monopoly Gazprom (GAZP.MM) holds the world's largest natural gas reserves, and Ukraine over prices last year led to a three-week standoff and gas cuts affecting hundreds of thousands of Europeans.

This year disputes might not be escalating, Piebalgs said at a conference. "There are better preconditions ... but there are still risks. The Commission is very vigilant."

Ukrainian state energy firm Naftogaz had trouble finding the cash to pay Russia for last month's gas bill, Prime Minister Yulia Tymoshenko said on Oct. 7, while one official suggested slashing imports. [ID:nL7170777] (Writing by Peter Dinkloh; editing by James Jukwey)

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