EU ready to act over axed gas supplies

EUROPEAN leaders today attacked Russia and Ukraine after they shut off gas supplies to Europe, leaving 12 countries without fuel in freezing conditions.

European Commission president José Manuel Barroso said that the continent had been "taken hostage" by a trade dispute. He isssued an ultimatum to the two nations: resolve the situation within 24 hours or face intervention.

Gas prices could soar in Britain if normal flows from Russia are not resumed quickly.

Mr Barroso said that the EU executive was ready to send observers to monitor the flows from Russia through Ukraine. The EU depends on Russia for about a quarter of its gas supplies, 80 per cent of which is pumped through Ukraine.

Countries that have reported a halt of Russian supplies via Ukraine include Romania, the Czech Republic, Slovakia, Bosnia-Hercegovina, Bulgaria, Croatia, Greece, Hungary, Macedonia, Serbia, and Austria.