By Dmitry Zhdannikov and Pete Harrison
MOSCOW/BRUSSELS (Reuters) - Russia and Ukraine rescued a deal that could get Russian gas flowing again via Ukraine to Europe on Tuesday after a contract dispute had cut off supplies for nearly a week in freezing temperatures.
Russia, whose bitter row with its pro-Western neighbour over gas prices has left European countries scrabbling to find alternative energy supplies, said that by Tuesday morning gas could start flowing again through Ukrainian pipelines to Europe.
Russia has accused Ukraine of siphoning off gas to make up for a shortfall since Moscow turned off the tap on January 1 in a dispute over gas prices. Ukraine denies the charge and alleges Moscow is holding European energy consumers to ransom.
The deal signed in Brussels on Monday set out the procedures for international observers to deploy to strategic points along the gas export route to check no gas is being stolen -- a condition set by Russia for resuming supplies.
"The document has been finally signed," said Alexander Medvedev, the deputy chief executive of Russia's state gas export monopoly Gazprom.
He told a news conference in Brussels that supplies should be restarted at 7 a.m. British time on Tuesday "if there are no obstacles."
Gazprom and Ukraine have said it will take at least 36 hours after that before gas reaches the borders of the European Union.
An attempt to get the deal signed over the weekend collapsed after Russia objected to hand-written comments Ukraine had added to the document at the last minute.
Under pressure from the European Union, Kiev later dropped its addition. But Russian officials said there was still a possibility fresh disagreements could undercut the latest deal.
ENERGY SECURITY
The dispute has highlighted Europe's dependence on Russian gas and galvanised efforts to find alternative supply routes.
"The crisis must encourage member states to make energy security a bigger priority than it has been so far," Czech Industry and Trade Minister Martin Riman, whose country holds the EU's presidency, said in a telephone interview.
"This crisis should be an encouragement, a kick for us all to start working faster and seriously on the projects," he said.
The gas row is yet another power-play between Moscow and Kiev, whose relations have been strained since Ukraine elected pro-Western leaders after the "Orange revolution" in 2004 and applied to join the NATO military alliance.
Ukraine itself will remain cut off from Russian gas because the two sides have still not agreed on a 2009 contract. Kiev says it has enough gas stockpiled to cope until spring.
Russian officials said a possible obstacle to gas flows resuming is a disagreement between Russia and Ukraine over who will pay for "technical gas" -- the huge volumes of the fuel needed to restore pressure in the pipeline network.
Signalling the potential for new flare-ups, an aide to Ukrainian President Viktor Yushchenko struck a defiant note. "Ukraine held out and can hold out much more," Andriy Goncharuk told a news conference in Kiev.
ENERGY SHORTAGES
Eastern Europe has been badly hit by the gas shutdown, with several countries forced to look to alternative means of power or to use their reserves.
Bulgaria said it would ask the European Union to provide 400 million euros (360.7 million pounds) in aid to help ease its dependence on Russia, its sole gas supplier, by expanding storage and building pipeline links to Greece and Romania.
Bulgaria, like Slovakia, said it might be forced to restart a nuclear reactor to produce enough electricity.
Slovakia, which declared a state of emergency last week after the cut-off, said it was on the brink of a power blackout after a fire forced the partial shutdown of a coal power plant, news agency SITA reported.
Analysts say the dispute has damaged both Moscow and Kiev: Ukraine's ambitions to integrate with Western institutions have suffered a setback, while questions are again being asked about Russia's reliability as an energy supplier.
"It is unbearable that Russia and Ukraine carry out their conflict in the middle of a grim cold winter on Europe's back," German economics secretary, Peter Hintze, said in Brussels.
