Bloomberg: Putin Threatens EU Gas Squeeze Raising Stakes for Ukraine

Russian President Vladimir Putin flew into Milan last night for peace talks with European Union leaders after threatening to cut the supply of natural gas through Ukraine if the government in Kiev diverts fuel for domestic use.

After missing an earlier meeting time because he stayed on at a military parade in Serbia, Putin met German Chancellor Angela Merkel shortly before midnight as they prepared for formal talks on Ukraine scheduled for 8 a.m. today. Ukrainian President Petro Poroshenko also met Merkel as well as Italian Prime Minister Matteo Renzi and EU President Herman van Rompuy.

Merkel and the EU have blamed Putin for stoking the crisis by providing pro-Russian rebels with cash, weapons and fighters since Russia annexed the Ukrainian peninsula Crimea in March. Putin, who was accompanied by OAO Gazprom Chief Executive Officer Alexey Miller, said he’s worried Ukraine may steal Russian gas bound for European markets.
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