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EU's Barroso To Raise Russia-Ukraine Gas Row At Summit

BRUSSELS (AFP)--European Commission chief Jose Manuel Barroso vowed Friday to raise Russia's gas price conflict with Ukraine with European Union leaders at a summit next month to try to avert a new energy crisis.

Barroso said he had received a letter about the matter from Russian Prime Minister Vladimir Putin and had a long telephone conversation with him Friday.

"I promised Mr. Putin I would raise the issue with the heads of states and government," he told reporters, to "see what is possible to do."

Russia has called in recent days on the European Union to help Ukraine pay for its gas, as Ukraine faces the menace of Russia turning off the natural gas taps as it did for two weeks in January, hitting supplies in Europe.

Friday, Putin proposed that the E.U. create a pool of credit to help Ukraine meet its gas payments, his deputy Igor Sechin said in televised comments.

"If our suggestion is accepted and if Europe is interested in providing credit to Ukraine for this purpose, Russia will look at the possibility of its participation," he added.

Russia has repeatedly said that Ukraine has problems paying for its gas needs due to the financial crisis.

Ukraine is a vital route for Russian gas exports to Europe and arguments over payment by Ukraine in January led to several European states having their gas supplies cut.

But Barroso said it was "difficult...in fact impossible" to help out Ukraine, given the current state of the E.U. budget.

  (END) Dow Jones Newswires
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