ISRAEL DAY 10 IN GAZA

ISRAEL KEEP UP THE GOOD WORK OF STOPPING THE HAMAS MURDERERS FROM KILLING INNOCENT ISRAELIS.

Gaza battle stretches into night despite truce calls By Nidal al-Mughrabi – Mon Jan 5, 2:31 pm ET

GAZA (Reuters) – Israeli troops backed by air strikes fought to seize ground from Hamas militants deep inside the Gaza Strip on Monday despite international calls for a ceasefire in a conflict that has killed more than 540 Palestinians in 10 days.

Israel's defense minister said the operation, aimed at stopping Hamas rocket attacks on southern Israel, could get more difficult before the mission was accomplished.

Hamas vowed to fight on in every street, every alley and threatened to fire more rockets across the border into Israel.French President Nicolas Sarkozy, on a peace-brokering trip to the Middle East, and U.S. President George W. Bush, in his final weeks in the White House, both appealed for a ceasefire.But disagreement on who should stop shooting first and on what terms made the chances of a pause soon remote.

Israel made clear its priority was to secure the safety of its citizens, while Hamas called for a lifting of the blockade of the enclave, crammed with 1.5 million people whose lives are growing ever more squalid. Many lack food, water or power.The death toll in Gaza rose to at least 541 people, many of them civilians. Among Monday's victims were 13 members of a Palestinian family killed in an Israeli strike on their home in a refugee camp, Palestinian medical officials said.The Israeli army said dozens of Hamas fighters had been killed since ground troops invaded on Saturday following a week-long air blitz.Israel launched the offensive after Hamas called off a six-month truce last month and stepped up its rocket attacks in response to Israeli raids and blockade of the enclave, which the Jewish state occupied from 1967 to 2005.Israeli soldiers and Islamist militants fought throughout the day and into the night on Monday. Militants fired mortars and grenades and detonated mines and tried to lure Israeli soldiers into built-up areas, witnesses said.The Israeli air force bombed dozens of targets, including homes of Hamas members used as weapons depots.As night fell, Israeli troops were trying to capture a hill overlooking Jabaliya town and refugee camp and Hamas fighters were resisting them strongly, witnesses said. Heavy Israeli air and artillery strikes concentrated on that area.

Israel's advances into Gaza have carved the 40 km (25 mile)-long coastal territory into two zones and forces have surrounded its largest urban area, Gaza City.Defence Minister Ehud Barak told parliament's foreign affairs and defense committee Hamas had been dealt a heavy blow.But we cannot say that its fighting capabilities have been harmed ... Hamas did not seek a direct confrontation with our forces and wants to drag our forces into urban areas, he said.Difficult moments lie ahead in this operation and the main test could still be ahead.

STREET FIGHTING

Hamas leaders rallied their combatants with defiant rhetoric. Thousands of fighters were waiting in every street, every alley and at every house to tackle them, Hamas military spokesman Abu Ubaida said in a broadcast speech. Hamas would increase its rocket strikes on Israel if the Israeli attacks on Gaza continued, Ubaida said. A rocket hit the Israeli port city of Ashdod, damaging a building and wounding two people, police said. Four Israelis have been killed by salvoes fired into Israel since the offensive began. An Israeli soldier was killed in fighting on Sunday and 48 have been wounded since the ground invasion began. In Ramallah in the Palestinian-ruled West Bank, French President Sarkozy called for a ceasefire as soon as possible and said that time is running against peace.The guns must fall silent, there must be a humanitarian truce, Sarkozy said. He said he would tell Israeli leaders the violence must stop but he also condemned Hamas for its attacks on Israel. Czech Foreign Minister Karel Schwarzenberg, heading an EU peace mission, sounded more resigned to prolonged fighting. We do not have a specific plan for a ceasefire because the ceasefire as such must be concluded by the involved parties, he said in Jerusalem.

U.S. President George W. Bush, speaking in Washington, blamed Hamas for provoking the bloodshed and said any ceasefire must include provisions to stop its rocket attacks. Instead of caring about the people of Gaza, Hamas decided to use Gaza to use rockets to kill innocent Israelis, he said. Saudi Arabia said the international community should do more to stop Israeli barbarity and should not ignore the history of its occupation and settlement of Palestinian territories. Israeli Foreign Minister Tzipi Livni rebuffed European proposals for international observers in the Gaza Strip after any ceasefire, pushing instead for teams that will help search out and seal off tunnels that could allow Hamas to rearm. At the United Nations, Arab countries were drafting a resolution to demand an immediate end to Israeli aggression.The situation for Gaza residents grew more fraught. People badly needed food, medical supplies and other aid but the hostilities were hampering relief efforts, aid agencies said. In all 29 Palestinian civilians were killed on Monday, medical officials said. Bombs hit a tent where a family was mourning a paramedic killed in an air strike on Sunday. Three people were killed and 17 wounded, medical workers said. We were sitting in the mourning tent when suddenly they bombed us, we ran to rush the casualties to hospitals but they bombed again, Abdel-Dayem said.
(Writing by Angus MacSwan; editing by Andrew Roche)

EU sends mixed message as Gaza death toll mounts
PHILIPPA RUNNER Today JAN 05,09 @ 09:27 CET

The Czech EU presidency this weekend retracted its support for Israel amid the ground attack on Gaza, while France switched its criticism from Israel to Hamas.The Czech Republic on Saturday (3 January) published a statement on behalf of the EU, saying the ground assault was more defensive than offensive. But it pulled the line on Sunday, blaming it on a youthful mistake by its spokesman, Jiri Potuznik. Even the undisputable right of the state to defend itself does not allow actions which largely affect civilians, the second communique said.Meanwhile, French President Nicolas Sarkozy, who last week complained about Israel's disproportionate use of force, laid the lion's share of blame on Hamas in an interview on Monday.Hamas, which decided to break the truce and resume rocket fire against Israel, bears a heavy responsibility for the suffering of the Palestinians, he told Lebanese newspapers An Nahar, As Safir and L'Orient le Jour. The Czech EU presidency and Mr Sarkozy are leading EU efforts to broker a ceasefire and inject humanitarian aid to Gaza, each sending a separate diplomatic mission to the region this week.The Czech delegation - comprising French, Swedish and European Commission diplomats as well as top EU envoy Javier Solana - arrived in Egypt on Sunday night and will visit Israel and Palestine later on Monday.Mr Sarkozy lands in Egypt on Monday and is also to visit Israel and the Palestinian territories later the same day, at the risk of stealing the Czech Republic's thunder as the first world leader to personally travel to the Middle East since the war broke out.Mr Sarkozy's special aide, Henri Guaino, told Le Figaro there is no competition between the two delegations. But other French politicians betrayed the feeling that the Czech Republic is not up to the job.I think he [Mr Sarkozy] is the only one capable of taking an initiative like this, French budget minister Eric Woerth said on Europe 1 radio on Sunday.The melee of EU diplomats will also be joined on Monday by Tony Blair, the former British leader and current special envoy of the Middle East quartet (the EU, US, UN and Russia).Israeli officials during the Israel-Lebanon war in 2006 complained that the EU sent too many emissaries to enable a coherent dialogue.

The EU's chances of brokering a ceasefire have been hampered by the US, which on Saturday blocked a UN Security Council ceasefire resolution as the Bush administration counts down its last days in office.The Hamas government on Monday held out an olive branch by agreeing to send a negotiating team to Egypt, at the same time as the Czech and French delegations arrive in the country. But any EU talks with the group will be complicated by its inclusion on the EU terrorist register.

Anger in Europe

Outside the confines of high diplomacy, ordinary Europeans also voiced their opinions on the conflict this weekend as tens of thousands took part in demonstrations stretching from London to Istanbul.Pro-Palestinian marchers took to the streets of the UK, the Netherlands, Germany, Spain, Austria, Sweden, Poland, Greece and Cyprus, with reports of skirmishes outside Israeli embassies. In Paris, 20,000 people marched in support of the Palestinians on Saturday, while a crowd of 12,000 showed its solidarity with Israel on Sunday.Pro-Palestinian protests also took place in Turkey, Iran, Syria, India and Lebanon, with Israel tightening security on its northern border amid fears that Lebanese militants Hezbollah may fire rockets in the coming days.Public opinion in Israel firmly supports the Gaza assault. A poll by Maagar Mochot for Israel radio on Sunday said 81 percent of people back the incursion, even though 39 percent do not believe it will bring peace.

The latest reports on Monday morning indicated that 517 Palestinians - mostly civilians - have died so far, with over 2,500 injured. Four Israeli civilians and one soldier have also been killed.

Terror list complicates EU diplomacy in Middle East
LEIGH PHILLIPS Today JAN 5,09 @ 17:45 CET

EUOBSERVER / BRUSSELS - As two European delegations arrive in the Middle East for talks aiming to achieve a ceasefire between Israel and the Gaza Strip, governed by Hamas, EU negotiating is being hampered by its own list of proscribed organisations, which forbids the bloc's officials from having contact with groups on the register.
The political wing of Hamas, the militant Palestinian group, has been on the EU's so-called terror list since 2003. Hamas' military wing, the Ezzedin al-Qassam Brigades - responsible for the rocket attacks on Israeli territory - was blacklisted in 2002.Once groups or individuals are on the list, the EU can have no official contact with them.An EU peace delegation arrived in Cairo on Monday (5 January) headed by Karel Schwarzenberg, the foreign minister of the Czech Republic, which currently chairs the six-month rotating EU presidency.Accompanying Mr Schwarzenberg, the EU's chief diplomat, Javier Solana, external relations commissioner Benita Ferrero-Waldner, Swedish foreign minister Carl Bildt and his French counterpart, Bernard Kouchner, were later on Monday to head to Israel, Ramallah - the unofficial capital of the Palestinian National Authority in the occupied West Bank - and subsequently Jordan.Ayman Taha, an official with Hamas, told Reuters on Monday that a delegation from the militant group would also be in Cairo following an Egyptian invitation to hold discussions.However, EU officials in Brussels said that no one from the peace mission would be meeting with Hamas because it is a proscribed organisation.Asked by reporters on Monday why the EU mission was heading to Ramallah in the West Bank and not to a location in the Gaza Strip where one of the two belligerents in the ongoing war is located, commission spokesman Amadeu Tardio said: There is a list that is decided by the Council [EU member states] and ...this is our guideline.Hamas is on this list of terrorist organisations and this is the policy we are applying because it has been decided unanimously by the European Union, he continued.The EU mission when it visits Ramallah later today will have contacts with the Palestinian Authority, which is our interlocutor, he said.

A 2001 EU definition of terrorist acts describes them as seriously damaging a country or international organisation, including attacks on a person's life that can cause death; attacks on the physical integrity of a person and acts causing extensive destruction to government or public facilities, transport systems or infrastructure.To qualify, they must also be carried out with the aim of seriously intimidating a population, or unduly compelling a government or an international organisation to perform or abstain from performing any act, or seriously destabilising or destroying the fundamental political, constitutional, economic or social structures of a country or an international organisation.Similar attacks but perpetrated against actors that are not countries or international organisations are not however classified as terrorist acts.One EU official told the EUobserver: It merits reflection of what a terrorist act is in drawing up the basis for such lists.

At the time of the Hamas terror listing, Germany and France had argued that such a move would be counterproductive to the peace process.An Israeli spokeswoman with the country's mission to the EU, Avivit Bar-Ilan, told this website there are other ways that communication can indirectly occur with the Gazan government.There are other players, particularly the Egyptians. These players can speak on behalf of Hamas.The Cairo discussions are due take place as a second, unofficial delegation from Europe headed by French President Nicolas Sarkozy is set to arrive in the region.

EU aid blocked

Separately, the European Commission announced on Sunday that it had made an extra €3 million in relief assistance available for the Gaza Strip. John Clancy, a development spokesman, on Monday said that this aid was having trouble reaching Gazans as a result of the Israeli blockade of the Palestinian territory.Difficulties still remain with the border crossings principally closed, he said, adding that the EU is still appealing to the Israeli authorities to ensure a humanitarian space is made available.Ms Bar-Ilan said that the delays were due to EU announcement of aid having only been made on Sunday.

PALESTINIAN MEDIA WATCH
http://www.pmw.org.il/

YAHOO NEWS VIDEO
http://news.yahoo.com/video

MIDEAST CONFLICT NEWS
http://news.yahoo.com/video/1874;_ylt=A0wNcxFdg6xIgbkAwD6z174F

ABC NEWS VIDEO
http://news.yahoo.com/video/2461

FOX NEWS VIDEO
http://news.yahoo.com/video/3074

FOX BUSINESS VIDEO
http://news.yahoo.com/video/3045

AP NEWS VIDEO
http://news.yahoo.com/video/2529

BBC NEWS VIDEO
http://news.yahoo.com/video/2918

REUTERS VIDEO NEWS
http://news.yahoo.com/video/2704

AFP NEWS VIDEO
http://news.yahoo.com/video/3091

CNBC NEWS VIDEO
http://news.yahoo.com/video/3245

HOARDING OF GOLD AND SILVER

DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.

JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.

REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.

EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.

REVELATION 13:16-18
16 And he(FALSE POPE) causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(CHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM

WORLD MARKET RESULTS
http://money.cnn.com/data/world_markets/

HALF HOUR DOW RESULTS MON JAN 05,2009

09:30 AM -40.45
10:00 AM -111.59
10:30 AM -59.34
11:00 AM -42.53
11:30 AM -68.50
12:00 PM -81.80
12:30 PM -53.12
01:00 PM -69.95
01:30 PM -57.98
02:00 PM -21.11
02:30 PM -82.27
03:00 PM -95.58
03:30 PM -136.20
04:00 PM -81.80 8952.89

S&P 500 927.46 -4.35

NASDAQ 1628.03 -4.18

GOLD 858.30 -21.10

OIL 48.57 +2.23

TSE 300 9285.51 +51.40

CDNX 874.49 +27.80

S&P/TSX/60 560.96 +4.13

MORNING,NEWS,STATS

Dow -62 points at 4 minutes of trading.
Dow -1 point at the high.
Dow -134 points at low today so far.

NYSE STATS 10:30AM
Advances 1587,Declines 1296,Unchanged 102,New Highs 6,New lows 2
NASDAQ STATS
Advances 1037,Declines 1358,Unchanged 201.

The Markets Factored in:Poor near-term economic numbers.
Not factored in:Lower 2009-10 estimates.
STIMULUS BILL
Heavier on tax cuts?
-Individual tax cuts.
-Writeoffs for Companies.
-Tax credit for hiring.

DAY 10 ISRAEL STILL AFTER ARAB MURDERERS.
10,496 ROCKETS FIRED INTO ISRAEL BY HAMAS SINCE 2001.
World calls for International armies in Gaza.
7.5 quake kills 4 in Papa on Sunday(Indonesia).
Small Tsunami waves come up in Japan.
Ontario Canada get freezing rain.
EU,sarkozy to negotiate with israel today.
Arab countries gather to take one voice against Israel.
Lookout if RUSSIA gets involved with Arab countries.

AFTERNOON,NEWS,STATS

Dow -1 point at high.
Dow -117 points at low.

FORD to report DEC sales drop 32.3%.
FORD 4Th Quarter weakest since 1981.
FORD US DEC sales -32.4% Vs -32.3%
HONDA DEC US sales -34.7%
EU seeks ceasefire in ISRAEL-GAZA.
Sarkozy met with Egypt,Israel,Arabs.
EU deligate talked with israel-arabs.
Britain,France calls for ceasefire in Gaza.
Germany,Denmark,Israels right to defend itself.
EU presidency Cze's say Israel is defending itself from Arab rockets.
Sweden blames Israel for esculating WAR.
Arab Murderers meet with Ban kl-moon at the un today.
Pairie Saskateuan cold snap.

WRAPUP,NEWS,STATS

Dow -1 point at low today.
Dow -140 points at low today.
Dow -0.9% today.
S&P 500 -0.4% today.
Nasdaq -0.2% today.
Stocks had rallied 3% higher on first day of 2009 trading friday.
Stocks give back some of Fridays gains.
S&P gains 7% over last 7 sessions,best rally since 1974.

DECEMBER AUTO SALES
GM -31.4%,FORD -32.4%,CHRYSLER -53.0%,TOYOTA -36.7%.

THE SECRETARY AND MADOFF SCANDLE
-SEC'S response to complaints about Madoff.
-Investigate possible conflicts of interest.
-Inspections of BMIS.
-Did Madoffs reputation influence SEC.

NEW YEAR RALLY
Positives:
1-No selling into rally.
2-New lows fade.
3-Volatility keeps dropping.
4-Sector rotation:Less defensive.
SECTOR last 7 DAYS
Energy +13.2%,Cons.Disc. +9.7%,materials +7.8%,Consumer staples +4.4%,Healthcare +3.8%.

Investors collect profits after last week's rally By TIM PARADIS, AP Business Writer JAN 05,09

NEW YORK – Caution returned to Wall Street Monday as investors gave back some gains from last week's rally even as they found encouragement from President-elect Barack Obama's calls for an economic stimulus package.Some retreat was to be expected after investors sent the Dow Jones industrial average to a two-month high on Friday; investors are wary about pouring more money into the battered market with economic data still generally weak.Monday was the first real test of Wall Street in 2009 after many traders took extended vacations during the holidays, leading to light volume that may have exaggerated the market's move upward. Investors are still contending with fears about everything from the state of corporate earnings to consumers' willingness to spend during a recession.There is some optimism out there that there is going to be a massive stimulus package by Obama that is going to get passed and that will help the economy, said Greg Church, chief investment officer of Church Capital Management in Yardley, Pa.Church warned, however, that a recovery will be difficult.The economy is still very weak. Unemployment is still high and is likely to get worse, he said.Some analysts warned against drawing big conclusions from Monday's trading.We're not reading too much into this market right now, especially after Friday's big gain, said Matt King, chief investment officer at Bell Investment Advisors. There's just not a lot of conviction behind it.ink there is an element of profit taking from Friday, when the Dow rose 258 points, he said.

According to preliminary calculations, the Dow fell 81.80, or 0.91 percent, to 8,952.89 after falling as much as 142.Broader stock indicators showed more modest declines. The Standard & Poor's 500 index fell 4.35, or 0.47 percent, to 927.45, and the Nasdaq composite index fell 4.18, or 0.26 percent, to 1,628.03.The Russell 2000 index of smaller companies fell 0.81, or 0.16 percent, to 505.03.Despite the pullback in the major indexes, advancing issues outnumbered decliners by about 2 to 1 on the New York Stock Exchange, where volume came to 1.32 billion shares.On Friday, the Dow registered its first close above 9,000 in two months. Last week, all the major indexes gained more than 6 percent, furthering a rally off multiyear lows that began Nov. 20.Bond prices pulled back Monday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.46 percent from 2.39 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.08 percent from 0.07 percent.The dollar mixed against other major currencies, while gold prices fell.Light, sweet crude rose $2.47 to settle at $48.81 a barrel on the New York Mercantile Exchange.Analysts expect Wall Street will remain on edge in the coming months as companies release their quarterly results and, more important, their forecasts for the year. Economists are expecting terrible profit reports and cautious forecasts but anything worse than expected could rock the market. Kim Caughey, equity research analyst at Fort Pitt Capital Group, said investors are already bracing for lackluster corporate results, a stance that could help Wall Street more easily absorb bad news. Since late November, a pessimistic market has been able to write off some bad economic readings as unsurprising. I think it may put a limit on the downside because we're already expecting things to be terrible. It's not going to take a whole lot to meet or exceed terrible, she said. Caughey warned, however, that modest expectations likely won't be enough to take the market higher. It's just going to limp along, she said of the economy.

Some stocks and sectors saw selling Monday as analysts issued downbeat forecasts. JPMorgan Chase & Co., which last year scooped up ailing banks Washington Mutual and Bear Stearns, fell after a Deutsche Bank analyst late Sunday reduced his 2009 profit forecast for the company. He predicts JPMorgan will see increases in soured loans. The stock fell $2.10, or 6.7 percent, to $29.25 and was the steepest decliner among the 30 stocks that make up the Dow industrials. Another downgrade weighed on the telecommunications sector. Verizon Communications fell $2.16, or 6.2 percent, to $32.48, while AT&T Inc. fell 99 cents, or 3.4 percent, to $28.43. Both stocks are Dow components. Some energy stocks advanced as oil rose. El Paso Corp. rose 50 cents, or 6 percent, to $8.81, while XTO Energy Inc. rose $2.12, or 5.6 percent, to $39.70. Apple Inc. eased some investors' worries about the health of Chief Executive Steve Jobs. Wall Street closely associates his vision with the company's success. In a letter released Monday, Jobs acknowledged his recent weight loss, and said his doctors believe he has a hormone imbalance. Jobs, a survivor of pancreatic cancer, will continue as CEO during his recovery. Apple rose $3.83, or 4.2 percent, to $94.58. Overseas, Britain's FTSE 100 rose 0.39 percent, Germany's DAX index rose 0.22 percent, and France's CAC-40 added 0.31 percent. Japan's Nikkei stock average rose 2.07 percent, and Hong Kong's Hang Seng index rose 3.46 percent. On the Net:
New York Stock Exchange: http://www.nyse.com Nasdaq Stock Market: http://www.nasdaq.com

Cold War politics haunt EU gas crunch response
PHILIPPA RUNNER Today JAN 5,09 @ 17:44 CET

EUOBSERVER / BRUSSELS - Ex-Communist EU states are again accusing Russia of using energy as a political weapon in the Ukraine gas crisis, despite European Commission efforts to paint the dispute as a purely commercial matter.It's big politics from 2004 [when Ukraine broke away from Russia's control in the Orange Revolution], a senior Lithuanian official told EUobserver on Monday (5 January).Russia is saying: You have to become a vassal state, then you get what you want. All the neighbouring states of Russia are still fighting for their independence, he added. Lithuania is paying one of the highest prices for gas in Europe and this is also as a result of Russian attitudes to our policies.Russia cut off Ukraine's gas on 1 January after accusing Kiev of not paying its 2008 bill and asking it to pay $450 (€330) per thousand cubic metres of gas in 2009, compared to $180 in 2008 and compared to average European prices of $450 to $500.The Paris-based International Energy Association (IEA) has questioned the commercial logic of the move.To adjust prices so rapidly will cause problems for Ukrainian consumers, IEA expert Ian Cronshaw told this website. Russia's call for higher prices is interesting because it reflects the abnormally high oil prices at the beginning of 2008. Those prices are dropping and should keep falling in 2009.EU deputy ambassadors met in Brussels on Monday to exchange technical information about gas supply shortfalls. Ukraine transit of Russian gas accounts for one fifth (about 300 million cubic metres) of EU daily consumption.But the first political-level debate will take place at an informal gathering of EU foreign ministers in Prague on Thursday, with some EU officials expecting a renewed push for the Nabucco pipeline project, designed to bring in gas from Central Asia to the EU, bypassing both Russia and Ukraine.Russia-Ukraine rows over gas prices have taken place every winter since the Orange Revolution, with the worst spat in 2006 seeing Ukraine transit shipments to the EU plunge by 200 million cubic metres a day, compared to the current shortfall of around 50 million cubic metres.

The 2006 crisis was widely interpreted as a Russian attempt to destabilise the post-revolutionary government in Ukraine.But the European Commission and the Czech EU presidency are depicting the latest crunch as a purely commercial dispute between Russian supply firm Gazprom and Ukraine's state-owned gas buyer, NaftogaRosUkrEnergo - an intermediary company co-owned by Gazprom and Ukraine oligarch Dmitry Firtash, which buys gas from Gazprom and sells it on to Naftogas - has reportedly filed a law suit against Naftogas at an arbitration court in Stockholm to get its 2008 money.

It is a commercial dispute and it has to be solved by the two parties, European Commission spokesman Ferran Tarradelas said on Monday, adding that the commission's main concern is EU consumers, which have not yet been affected by the spat.A delegation of commission and Czech EU presidency officials is due in Kiev on Monday and Tuesday on a fact-finding mission to see how bad things might get, with another set of EU officials to meet Gazprom delegates in Berlin.Some EU officials believe a Russia-Ukraine deal will be struck by Wednesday, in time for Russian officials to settle down for the Russian Orthodox Christmas holiday.But the IEA in Paris is less optimistic, pointing out that while EU gas stocks (at 70 to 90 percent full) are higher than back in 2006, this week's cold snap in Europe will see gas demand shoot up.The bad news is the weather has turned. There's a nice little snowfall in Paris today, the IEA's Mr Cronshaw said. There doesn't seem to be a lot of momentum to resolve the issue. We're getting a little worried it's dragging on for a week already, whereas in 2006 it lasted just a few days.Correction: the article originally said an informal EU foreign ministers meeting will be held in Prague on Wednesday. In fact it will be on Thursday.

Czechs face tough time at helm of EU
HONOR MAHONY Today JAN 5,09 @ 17:44 CET

EUOBSERVER / BRUSSELS - With a weak government and a eurosceptic president, the Czech Republic will have to make a Herculean effort to ensure that its six-month stint at the EU's helm does not sink into incoherency and recriminations.Its case is not helped by the fact that for the previous half year, the bloc has been run by France's Nicolas Sarkozy, a whirlwind politician who at times steered the EU through sheer force of personality. Mr Sarkozy has relinquished power only reluctantly to the Czechs, intimating that the EU would be better served under a large member state and him in particular.A small member state in charge of the EU is often seen as positive, as they generally tend to concentrate on the job. But the thought of the ex-Communist Czech Republic - only four years a member of the bloc - running the EU has been making Brussels jittery.This is mainly due to Vaclav Klaus, the Czech president and an open critic of the European Union. He regularly ruffles EU feathers, most recently by dining with Declan Ganley during a state visit to Ireland. Mr Ganley headed a successful campaign against the EU treaty that resulted in the country rejecting the charter in a referendum.

The Czech government is headed by conservative Prime Minister Mirek Topolanek, a political enemy of Mr Klaus. Adding to Brussels' poor perception of Prague, Mr Topolanek's party is stalling on the ratification of the EU's new treaty by linking it to agreement on a separate issue. The country is one of just three that have not ratified the treaty, with larger member states tending to see it as a slight that the presidency country has not approved the EU's newest rules.Another concern hanging over the presidency is that the fact that the government could fall some time over the next six months, as Mr Topolanek hangs on to power by a thread.But despite such doubts, the international agenda has meant that Prague has been catapulted into international affairs since day one of its presidency.The on-going Israeli offensive in Gaza, which has killed more than 500 Palestinians, was already in its fourth day when the Czech Republic took on speaking for the EU, while Russia is locked in a gas dispute with Ukraine, putting EU energy supplies at risk.The Middle East conflict has been made more difficult for the Czechs to mediate because of the myriad EU officials and voices in the region, including President Sarkozy. And Prague already tripped up by issuing an EU statement in support of Israeli actions, before rapidly moving to change it.Meanwhile, finding a common approach to Russia on any issue is traditionally difficult for the bloc. A small member state, already somewhat lacking in EU credibility, is unlikely to have the clout to forge a unified line. Muddying the waters still further is the US missile defence system planned for Czech soil, which is strongly opposed by Moscow.In addition, the Czech Republic is heading the EU at a time of a global financial crisis and has the difficult task of implementing the €200 billion economic stimulus package agreed by EU leaders at the end of last year. Recent comments mocking other governments for ramping up state spending in the face of the crisis has not endeared it to some EU capitals.For its part, the Czech EU presidency has said its main priorities are the economy, energy and external relations. It has sought both to downplay expectations about what any presidency can achieve while seeking to reassure other capitals that it is capable of the job.