Kiev: Fearing winter gas shortages, the European Union on Monday implored Russia and Ukraine to resolve a price dispute that effectively halted gas supplies to the ex-Soviet state.
"I would like once again to call on the two parties to make an effort to compromise," European Commission president Jose Manuel Barroso told an economic forum in Spain.
After EU-brokered talks failed to forge a compromise, Russia cut off gas deliveries on Monday and said it would require Ukraine to pay in advance for supplies.
While Russia is continuing to ship gas to Europe via Ukraine, the dispute threatens to cause supply disruptions for the third time in a decade.
Ukraine receives half its gas from Russia and, importantly, transports 15 percent of the fuel consumed in Europe.
A deal was needed for their "credibility", said Barroso.
The European Commission chief urged Russia to accept an EU-crafted proposal, which had attempted to find a compromise on the two sides` competing demands on gas prices and debt repayments.
Kiev had said it was ready to make a USD 1.95 billion (1.45 billion euro) payment demanded by Moscow if Russia agreed to cut its ongoing rate to USD 326 from USD 485.50 for 1,000 cubic metres of gas.
But Russian President Vladimir Putin had insisted that USD 385 per 1,000 cubic metres was his final offer.
The European Commission has proposed that Kiev pay USD 1 billion Monday and the rest of the unpaid debt in instalments stretching through the end of the year.
EU Energy Commissioner Guenther Oettinger proposed that Ukraine accept the USD 385 figure demanded by Putin in the winter and see its rate drop to USD 300 "or a few dollars more" during summer months.
"We would really like for Russia to be able to accept this proposed agreement," Barroso said. "The proposal that is on the table is a good proposal."
But Russian Energy Minister Alexander Novak ruled out any formal talks with Ukraine and the EU before Kiev settles its debt.
"If the debt in the amount of USD 4.5 billon is settled, we will be ready to continue the talks," Novak told a news conference in Moscow.
