Putin Warns EU of Cutting Gas Supplies if Ukraine Steals from Transit

Russia's President Vladimir Putin, before flying to Milan Thursday to hold peace talks with EU leaders, threatened to cut natural gas supply if the Ukraine government steals during transit to satisfy its own domestic needs. However, he added that "hopefully" it won't come to that.

Putin will be meeting Ukraine's President Petro Pororshenko and several EU leaders at the top level talks, Friday.

"I can reassure you that there will be no crisis that could be blamed on Russian participants in energy cooperation. But, there are big transit risks. If we see that our Ukrainian partners, just like in 2008, begin removing gas without permission from the export pipeline system, we, just like in 2008, will consecutively reduce the stolen volume at the cost of supplies," Putin told the media during his visit to Serbia, The Moscow Times reports.

If Russia cuts the supply, the European Union will suffer majorly. Russia provides for Europe's one-third gas demand and the European Union receives about half of the gas through Ukraine. The disagreement over pricing is the third time in a decade between the two countries. However, tensions are more intense this time, considering Russia annexed Crimea that triggered months of fighting between government forces and pro-Russian rebels in eastern Ukraine.

But, Putin hopes things will get better. "But I am very much hoping that it will not come to that. I am hoping that they will be able to agree on everything and draw a line under all the disputes," he said, The Irish Times reports.

The crisis in Ukraine has reduced Russia's relations with the West to its lowest since the Cold War. Brussels suspects that Kremlin might use its strong energy position this winter to not only punish Ukraine, but also pressurize EU states to lessen the economic sanctions against Russia.

But, no matter in what spirit Putin takes a decision, he is "always accused of doing something," Bloomberg reports.