Putin warns Ukraine, Europe on transit gas

Russia and Austria agreed to move quickly to finalize the South Steam gas pipeline deal, an alternative gas supply route that would deliver gas to Europe...while bypassing Ukraine. Russia is warning it may cut gas deliveries to Europe if Ukraine siphons off supplies crossing its territory.

Russia has been trying to persuade European customers wary of further disruptions of the necessity of alternative supply routes, particularly its Nord Stream and South Stream pipelines, both of which would bypass Ukraine.

Having recently won support from Sweden, Finland and Denmark for another venture that would circumvent Ukraine by way of a northern detour, Russia is now turning its attention to support for its southern route.

Russian Prime Minister Vladimir Putin attends a meeting outside  Moscow in Novo-Ogarevo. Ukraine has paid Russia for October gas supplies,  Prime Minister Yulia Tymoshenko said on Friday, after Putin had warned  against late payment.(AFP/POOL/Alexey Druzhinin)

Vladimir Putin, Russian Prime Minister, said, "Additional routes are essential for supplying hydrocarbons to our main partners in Europe. This will increase stability and reliability, and discipline our transit partners."

Werner Faymann, said, "South Stream, as well as other projects which have never been seen by us as rival projects, provide a diversification or a chance to provide more security in energy supply."