Severing economic ties with Russia to harm EU: Putin

Curtailing cooperation between Moscow and the European Union (EU) will blunt the economic competitiveness of the European countries, Russian President Vladimir Putin said Wednesday.

"Severing economic ties between the EU and Russia will inevitably lead to the loss of certain degree of competitiveness of the entire euro-zone in mid-term and long-term prospective," Putin told reporters following talks with his visiting Cypriot counterpart Nicos Anastasiades.

The EU has lost tens of billions of euros due to anti-Russia sanctions and the ensuing counter-sanctions by Russia, which boasts enormous natural wealth and holds leading positions in many other sectors such as nuclear power, he said.

Admitting that cutting ties with the EU also casts negative effect on Russia, Putin said European countries should have taken their national interests into account when imposing sanctions.

Meanwhile, the recent flare-up in the gas dispute between Russia and Ukraine would also likely to threaten Moscow's gas supplies to Europe, the president said.

Gazprom CEO Alexei Miller warned Tuesday to fully halt natural gas supplies to Ukraine in two days due to the absence of prepayments.

Russia's Gazprom and Energy Ministry "are taking energetic measures not only to inform our European partners about the problem on gas supplies but also to get them involved in trying to solve it," Interfax quoted Putin as saying.

Regular contacts were made among Russian, Ukrainian and European sides to solve the gas issues, European Commission Vice- President responsible for the Energy Union Maros Sefcovic said Wednesday.

Putin said Kiev's decision of cutting gas supplies to Donbass " looks like genocide," especially considering current humanitarian crisis there.

Under the Minsk agreements and the resolution of the UN Security Council, Kiev must ensure energy supplies to Donbass in line with the provision on the economic recovery and social restoration in eastern Ukraine, according to Putin.

Kiev last Wednesday cut off its gas supplies to Donetsk and Lugansk regions because of "critical damage" of the gas pipelines, which was seen by the rebels as a political move.

Putin on Wednesday stressed that Gazprom did not breach any contract terms on gas supplies to Ukraine through border points in eastern regions. Endite