EU's commissioner says Ukraine-Russia gas dispute will not affect supplies to Europe

EU energy commissioner Andris Piebalgs said Russian gas exports to Europe will not be affected by a gas price dispute between Moscow and Kiev.

Speaking in Brussels after a meeting with Ukrainian energy minister Ivan Plachkov, Piebalgs said: 'I expect there will be no difficulties on gas transit from Russia to the EU,' Forbes informs.

Russia and Ukraine have been arguing over Moscow's plans to phase out subsidised gas prices for Ukraine and bring them in line with world market rates.

Officials in Moscow have said the dispute could endanger deliveries of Russian gas exports to Europe, which pass through Ukraine.

Under an existing barter system, Russia provides Ukraine with nearly a third of its annual gas needs as payment for transit of its European gas exports.

Last week, Ukrainian president Viktor Yushchenko said the dispute will be resolved by the end of the year.

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