Russia Might Shut Down Gas Supply to Ukraine; EU Too Will Suffer

The border conflict between Ukraine and Russia might affect gas supply to the European Union . Naftogaz, Ukraine's energy supply firm said Wednesday that the natural gas price row between Kiev and Moscow may affect supply to some EU countries, reports the Xinhua news agency.

"Naftogaz considers it appropriate to warn the European partners about possible risks and suggests solving the problem by joint efforts via tripartite negotiations between Ukraine, EU and Russia," the company said a statement, Xinhua reports.

The Ukraine government and Moscow have been fighting over price agreement since 2009. With winter fast approaching, Russia can leverage gas supply as a bargaining chip by closing supply to Ukraine and Europe. The pipelines to Europe pass through Ukraine.

Currently, around 15 percent of EU gas supplies flow through Ukraine

Ukraine wants a tripartite agreement on the gas supply issue with either Brussels pitching in for a new deal or making alternate arrangements. But analysts believe Russia also cannot afford to suffer a loss in revenue, reports the Moscow Times.

In June, Russian gas company Gazprom cut all gas supplies to Ukraine after the two sides failed to reach an agreement on payments. .According to Gazprom, Ukraine owed it  $5.3 billion in backlog bills

Ukraine's gas supply will last till the New Year, said gas industry expert Rustam Tankayev from the Russian Union of Oil and Gas Producers, reports Moscow Times. The beginning of the new year will escalate matters, what political pundits call as "communal catastrophe".

"A lack of basic comforts for the population could seriously damage the legitimacy of the Ukrainian government," said Pavel Salin, who works at of the government-affiliated Financial University in Moscow.