Ukraine`s Naftogaz Urges Talks With Gazprom

Gazprom cut off supplies to Ukraine on Jan. 1 and has since accused the company of illegally siphoning off gas meant for Europe.

Ukrainian state energy firm Naftogaz called on Russia's Gazprom to return to talks on Saturday but accused the Moscow-based gas monopoly of "blackmail".

Gazprom cut off supplies to Ukraine on Jan. 1 and has since accused the company of illegally siphoning off gas meant for Europe. Naftogaz denied this again and said it has used some of its own gas to keep the pipeline system to Europe operational.

Several European countries have complained that gas pressure has dropped.

"The company thinks Gazprom's position breaches international practices of holding negotiations, the generally accepted principles of business and amounts to energy blackmail and economic pressure," Naftogaz said in a statement.

"Naftogaz demands the speedy cessation of the information hysteria ... and the return of Gazprom to constructive dialogue at the negotiating table," it said. Naftogaz again denied a Gazprom claim that it had been stealing gas destined for Europe.

It said it had increased gas supplies to Romania by 100,000 cubic metres a day and to Hungary by 1.8 million cubic metres a day to make up for a shortfall of Russian transit gas.

"Despite the significant cut of Russian transit gas and setting price limits, Ukraine has used its own volumes to support the stability of gas supplies to the EU," it said.