EU calls Russian move to cut gas a 'blackmail'

The European Commission has termed Russian move to cut gas supply to European countries a 'blackmail'. On Wednesday, Russia cut gas supplies to Poland and Bulgaria for refusing to pay in roubles. Gas prices soared on fears that more states could be hit, notably Germany, Europe's biggest economy, which last year bought more than half its gas from Russia.

President Vladimir Putin's demand for payment in roubles is designed to soften the effect of Western sanctions that include freezing hundreds of billions of dollars of Russian assets. Russia's top lawmaker said other "unfriendly" countries might also be cut off.

Though the EU has now accused Moscow of blackmail, the bloc issued an advisory to EU countries last week. The advisory mentioned options by which EU buyers may continue payments for gas without breach of sanctions. Uniper, Germany's main importer, said it could pay without violations.

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However, EU Energy Commissioner Kadri Simson said on Wednesday that Brussels was still advising companies to stick to the terms of their contracts, which usually specify payment in euros or dollars, and avoid paying in roubles.

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At a meeting on Wednesday, member state ambassadors asked the Commission for clearer guidance, four EU diplomats said.

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Gazprom, the state-controlled energy giant that supplies Europe with about 40% of its gas needs, said transit via Poland and Bulgaria - whose pipelines supply Germany, Hungary and Serbia - would be cut if fuel was siphoned off illegally.

(With inputs from agencies)