Russia, Ukraine begin fresh round of gas talks

Russia and Ukraine began fresh EU-brokered gas supply talks June 11, with Moscow extending a cut-off deadline to next week in the latest signs the worst East-West crisis in years may be easing.

The negotiations are being closely watched to see if they confirm recent signs that both sides want to bring some sort of closure to a crisis that began with pro-EU protests in Kiev six months ago.

If successful, the talks would build on a tentative peace push by Kiev's new president who on Tuesday ordered the creation of humanitarian corridors in the country's war-torn east, meeting a key demand of Russia.

"The Russian side has taken a step in favour of pursuing negotiations which have been going on quite intensely," Gazprom head Alexei Miller said after a meeting with EU Energy Commissioner Guenther Oettinger.

President Vladimir Putin meanwhile told German Chancellor Angela Merkel in a telephone conversation that he had ordered the Russian delegation to pursue negotiations from a "constructive position" in order to reach "a mutually acceptable agreement."

Oettinger chaired a marathon round of talks on Monday with Russian Energy Minister Aleksandr Novak and his Ukraine counterpart Yuriy Prodan but they broke up early June 10 without an accord as the Gazprom cut-off deadline loomed.

No breakthrough

With all sides agreeing that as long as the talks continued there would be no Russian cut-off, Oettinger announced another round of talks for June 11.

There would be no early breakthrough, he cautioned, with a deal likely to take days to reach. Highlighting the challenges ahead on June 10, Ukraine Prime Minister Arseniy Yatsenyuk blasted Russia for playing "games" after Moscow offered a $100 discount on the gas...