Ukraine gas supplies in doubt as Russia seeks EU payment deal and prepayment for winter supplies.

Ukraine gas supplies in doubt as Russia seeks EU payment deal and prepayment for winter supplies. (Reuters).

Ukraine's efforts to unblock deliveries of Russian gas as winter sets in were deadlocked on Thursday as Moscow's negotiators were quoted demanding firmer commitments from the European Union to cover Kiev's pre-payments for energy.

EU-hosted talks were adjourned after running late into the night, Energy Minister Alexander Novak and the head of Russian gas firm Gazprom (GAZP.MM) told Russian news agencies. They would resume later in the day if Ukraine and the EU had a firm financing deal in place, Gazprom head Alexei Miller said.

Ukrainian and EU officials were not available. A spokeswoman for Energy Commissioner Guenther Oettinger issued a statement cancelling a news briefing that had been tentatively set for 8:30 a.m. (0730 GMT) in the event of an agreement.

There has already been agreement on the price Kiev will pay for gas over the winter, the amount to be supplied and the repayment of some $3.1 billion in unpaid Ukrainian bills but Moscow, which cut off vital pipelines in June as the conflict with Ukraine and the West deepened, wants more legal assurances that Kiev can pay some $1.6 billion for new gas up front.

Novak was quoted by RIA news agency as saying he had been told in the talks that Ukraine was discussing funding for 4 billion cubic metres of gas with the European Commission and the International Monetary Fund but he had seen no guarantee of it.

"This isn't about guarantees, but only statements from the Ukrainians," he said. "We were shown no written guarantees."

He noted that Russia was only offering to open the taps once prepayments were made by Ukraine, whose economy is in crisis and which has a record of payment difficulties. "If there's money, there will be gas," Novak said.

The gas cut-off has had little impact for months. But pressure is mounting for a deal as temperatures start to drop below freezing and European energy commissioner Guenther Oettinger, who has been mediating, prepares to leave office on Friday, making way for a new European Commission.

Ukraine's Naftogaz company has set aside $3.1 billion in a special escrow account to pay off a chunk of its debt to Gazprom, but Russia is also demanding prepayment for winter supplies before it is willing to turn the taps back on.

Kiev says it is working to raise more money from all possible sources of financing, including the European Union. The European Commission is considering Ukraine's request, made last week, for a further loan of 2 billion euros.

But Kiev also says money alone may not be enough.

"I have an impression that the Russian side doesn't want to agree," Ukrainian Finance Minister Oleksander Shlapak said on Tuesday.

Analysts said it could be very hard to come up with enough assurances to satisfy Russia, even if Gazprom, and more widely the Russian treasury, would welcome new revenues as the economy suffers from the effects of Western trade sanctions.

Ukraine at the same time is pushing for written guarantees that any agreement on price will be lasting.

For all sides, there is much at stake.

Russia provides around a third of the European Union's gas, roughly half of which is pumped via Ukraine. Hmmm.....Anyone has a clue why VP Biden is visting Ukraine in November? Just dropping in to see how his son is doing on the Ukrainian Gas Board? If Ukraine starts siphoning EU Gas then all bets are off, expect a full scale invasion of Ukraine. Read the full story here.

White House officials declined to comment on Hunter Biden's association w/ Burisma & the company's holdings in Crimea & east Ukraine. @AP
— Sonja Jo (@Sonja_Jo) June 7, 2014

Related: Nato jets track 'unusual' Russian bomber sorties, heavy armor moving near Ukraine border.

Russia demands EU guarantee Ukraine pays for gas. http://t.co/BcbC6qkGR4

— RFE/RL (@RFERL) October 30, 2014